NTL Ireland has reported a 25 per cent increase in second-quarter revenues compared to the same period last year, despite cutting off 12,300 customers for not paying their bills.
Price increases levied on its cable television customers and the migration of a further 8,500 subscribers to its digital package boosted NTL Ireland's revenues.
The firm's British parent, NTL Inc, reported strong results but warned that it would have to seek new financing to cut the high interest on its debts. Mr Barclay Knapp, NTL's co-founder and chief executive, also said that he would step down later this week.
Mr Simon Duffy, a former Orange executive, will take over the reins from Mr Knapp, as many observers had predicted when he became chief operating officer of NTL in April.
Mr Knapp, who co-founded NTL in 1993 and built the firm through a series of acquisitions that eventually led to its bankruptcy, will stay on until the end of the year to advise on strategy.
"It's been a real dream for me to be able to run NTL and to start it and to get it to this position," said Mr Knapp, who exits with a $2.1 million (€1.86 million) payoff - three times his $700,000 salary.
NTL reported a 38 per cent reduction in its second-quarter net loss to £159 million sterling (€225 million), helped by sharply lower interest payments following a $11 billion debt-for-equity swap last year. Shares in NTL rose 5 per cent to $43.36 in early trading on the Nasdaq on publication of the results.
The firm also said it was pursuing financing alternatives to reduce its high-cost debt. It has been speculated that the firm plans to issue new shares.
NTL's debt now stands at $6 billion, compared with a market capitalisation of $2 billion.
Meanwhile, NTL Ireland said it had disconnected 12,300 customers during the second quarter of 2003 as part of its tough new credit policy. It also added 9,300 new subscribers bringing the net loss figure down to about 3,000.
NTL Ireland said it expected its residential customer base to decline by a further 15,000 during the second half of 2003 because of its more rigorous credit policy.
Revenues increased to £18.4 million in the three months to the end of June, up from £14.7 million in the same quarter of 2002, helped by price increases and further migration to NTL's higher-cost digital television service.
NTL Ireland ended the quarter with 362,400 customers. About 53,000 of these subscribers have chosen to upgrade to its digital service.
The results show NTL Ireland generated earnings before interest, tax, amortisation and depreciation of £5.6 million in the quarter, up from £4.2 million in the second quarter last year.
