Broadband gains for UPC as TV subscriptions fall

UPC IRELAND, the parent company of the NTL and Chorus cable television operators, yesterday reported further slippage in its TV subscriber base although the group has added significantly to its broadband and telephone customer numbers.

UPC had 518,700 analogue and digital TV subscribers at the end of June 2009, compared with 562,600 a year earlier. This was a decline of 7.8 per cent.

UPC now trails satellite provider BSkyB in terms of TV subscribers in spite of being longer established in the Irish market.

The cable TV group said it has 187,500 analogue subscribers and 251,000 digital customers. It also has 80,200 MMDS subscribers on its books. UPC has fared better in terms of broadband and telephone services, following a significant upgrade of its cable network around the country to cater for a triple-play offering to consumers.

The group had 121,600 broadband customers at the end of June, up about one-third year on previous year.

Its telephone customer base more than doubled to 43,800.

UPC’s revenues for the three months to the end of June were flat at €61.9 million but its operating cash flow, a measure of profitability, rose by 13.6 per cent year-on-year to €25.9 million.

Commenting on the reduction in TV subscriber numbers, UPC’s chief executive Robert Dunn said: “Our analogue service declined during the quarter due to customers migrating to digital, seasonal factors and competition in the marketplace.” He said the company’s multimillion-euro investment in an upgrade of its network meant an additional 29,000 homes could receive its triple-play service in the past quarter.

“The upgrade also enables us to launch high-definition TV services, introduce faster broadband speeds and in the future roll out interactive services such as video on demand,” he said.

UPC yesterday launched its HD service, which includes functionality to pause, record and rewind up to 140 hours of live television.

UPC’s Colorado-based parent company Liberty Global yesterday reported a net loss of $93 million. The company had 16.7 million subscribers at the end of June 2009.