LONDON -- NTL Incorporated (NASDAQ: NTLI) today reported its fourth quarter and year end results for 2004.
Highlights of Continuing Operations
Financial Highlights
--2004 revenue up 5.7 per cent to GBP 2,074 million
--Up 5.3 per cent to GBP 532 million vs. Q4 2003
--2004 Operating income before depreciation, amortization and other charges (OCF) increased 12.0 per cent to GBP 695 million
--Up 4.7 per cent to GBP 182 million vs. Q4 2003
--2004 Operating loss improved by 79.7 per cent to GBP (39) million
--Improved 88.6 per cent to GBP (6.4) million vs. Q4 2003
--OCF margin and adjusted OCF margin (or underlying margin)* in Q4 at 34 per cent and 36 per cent respectively
Operational Highlights
--Strong gross adds in Q4 of 185,200 (162,100 on-net) in line with previous four quarters
--2004 consumer revenue up 8.7 per cent to GBP 1,508 million
--Up 7.5 per cent to GBP 391 million vs. Q4 2003
--Q4 on-net ARPU of GBP 42.40
--On-net broadband growth of 71,800 in Q404, full year growth of 31 per cent
--Triple play on-net penetration of 24.0 per cent, up 3.4 points vs. Q4 2003
Corporate Highlights
--Free Cash Flow improved to GBP 61 million for full year 2004 vs. GBP (26) million for 2003
--Net cash provided by operating activities improved to GBP 385.3 million for the full year 2004 compared with GBP 318.8 million for 2003.
--Broadcast business sold for GBP 1.27 billion
--Used proceeds to prepay GBP 500 million of debt and announced intention
to effect the purchase of our common stock in any amount up to GBP 475 million
Commenting on the results, Simon Duffy, Chief Executive Officer of ntl, said: "ntl underwent major organisational changes in 2004, with almost every part of the business being restructured. It therefore gives me particular pleasure to report that, despite this upheaval, the company performed very well with underlying margins for the group as a whole, including Broadcast, rising to 37 per cent in Q4. For continuing operations alone, they rose to 36 per cent. We considerably strengthened and improved the operational base of the company, reinforcing our ability to continue to grow profitably.
After implementing major systems improvements in 2004 and aggressively removing delinquent or non-paying customers from our customer count, we expect to add over 200,000 customers on-net this year, including a further 20-25 per cent increase in our broadband customer base.
The sale of Broadcast and the acquisition of virgin.net mark significant changes in the company's strategic profile and, along with the operational improvements, position it well for the next stage of development. The whole company will remain focused on driving increases in shareholder value in 2005.