NTL makes first operating profit

NTL Ireland made a small operating profit in 2003, its first since it bought Cablelink from RTÉ and Eircom for €679 million at the height of the dotcom boom.

The company, which supplies cable television to 340,000 Irish households, reported an operating profit of €1.12 million in 2003, a major turnaround when compared to the €23.6 million operating loss reported in 2002.

NTL Ireland's accounts, which were recently submitted to the Companies Registration Office, show the firm increased turnover to €105.3 million in 2003, up from €95.3 million a year earlier.

Mr Graham Sutherland, managing director of NTL Ireland, said its turnover benefited from an increase in the number of digital television customers, price rises and an upturn in its business division, which supplies telecoms services to companies.

The results also reflected a once-off payment associated with NTL's success in a court case taken against the Revenue Commissioners for VAT connections, said Mr Sutherland, who would not comment on the firm's prospects for 2004 ahead of NTL Group results due next month.

However, NTL Ireland reported a pre-tax loss of €2.93 million for 2003 because of interest charges paid to service its debts.

This compares to the €28.4 million pre-tax loss for the 12 months to the end of December 2002.

NTL Ireland paid €4.3 million in interest charges in 2003 and had net debt listed on its balance sheet worth €97.4 million at December 31st, 2003. This compares to net debt of €110.6 million reported a year earlier.

NTL Ireland, a subsidiary of the British-registered firm, NTL Incorporated, supplies cable television services in Galway, Waterford and Dublin, and broadband services to households in certain parts of its franchise area.

NTL Incorporated, which bought Cablelink from RTÉ and Eircom in 1999 for €679 million, has not yet been able to realise a pre-tax profit from the firm.

NTL Ireland faces strong competition in the market from BSkyB and has had to invest significantly in the business to upgrade its network to carry digital TV and broadband.