NTL lose $15.8 Billion in one year

spongebob

Here is the Story on the FT website

Apart from that they owe another $17 Billion

The 2 combined make $32.8 Billion which is greater than the Irish national debt.

I guess that upgrading cable is a low priority till they get themselves sorted out a bit better.

M

Tellox

I'll take it ntl's 1-way-network wont be around much longer then?

Irish_Ranger_IR

I should have paid my bill !!!

MDR

Their Irish Operation is still making money though, they have 15,000 digital tv subscribers already. All it investment is being diverted to wales, a bit that doesn't make money, go figure.

SkepticOne

Originally posted by MDR
Their Irish Operation is still making money though, they have 15,000 digital tv subscribers already. All it investment is being diverted to wales, a bit that doesn't make money, go figure.

Is the money the Irish operation making sufficient to cover the EUR 700m money that was paid for the old cablelink network?

Perhaps they think that pressing for increases of 33% on the basic TV package is the way to go here rather than investing in infrastructure knowing that while Sky don't offer all the UK terrestrials here, Sky are not real competition but rather a luxury addition.

In the UK where these channels are available with a normal arial, for pure TV, you have a choice between Sky or cable for extra channels. Additionally, all the UK terestrials are offered over the Sky network. Since the cable companies are in direct competition with Sky, the way to go is to use two way services (telephony and Internet) to compete. These competitive pressures do not exist here.

MDR

well last time I looked they paid 440 million punts for Cablelink,
which is around 520 million euro. They have an operating profit in ireland of around 16 million euro per quater (that up in 14 million per quater the year before), that 64 million euro a year ...

so yeah, I would say that it was a good buy on their part. Despite the fact that Cablelink was over price, I think they eventually got a pretty good deal. Especially when you consider the amount of money they made through staff redundancies/relocations and liquadating their property assets in the Dublin area.

SkepticOne

Originally posted by MDR
well last time I looked they paid 440 million punts for Cablelink,
which is around 520 million euro. They have an operating profit in ireland of around 16 million euro per quater (that up in 14 million per quater the year before), that 64 million euro a year ...

According to this Gov't. web page

In April 1998, the Government approved a trade sale of Cablelink, which was 75% owned by
Telecom Éireann and 25% by RTÉ. NTL, which successfully bid £535.18 million (€679.54 million)
for the company, has indicated that it intends to play a leading role in providing an integrated range
of advanced broadband multimedia services, including digital television, voice telephony and Internet services. Telecom Éireann, RTÉ and NTL signed a sale and purchase agreement in July 1999, formally handing over ownership of Cablelink to NTL.

That figure was widely quoted in the press at the time. It might have been the STG figure that you were quoting.

so yeah, I would say that it was a good buy on their part. Despite the fact that Cablelink was over price, I think they eventually got a pretty good deal. Especially when you consider the amount of money they made through staff redundancies/relocations and liquadating their property assets in the Dublin area.

According to today's Irish Times:

NTL Ireland also reported results yesterday showing a small rise in revenues in fourth-quarter of 2001. Revenues during three months were £12 million sterling (€16.5 million), up from £11 million in the fourth quarter of 2000. Earnings before interest, tax and amortisation were £3 million in the fourth quarter, up from £1 million on the same period in 2000

I wonder what the figure is after interest, tax and amortisation. Note that the revenue figure of EUR 16m is not the same as operating profit. It simply refers to total sales. The operating profit is EUR 3m (earnings).

MDR

So there earnings during the forth quater of last years was £3 million STG, which is about €4.5 million. Which mean in a year they would make €18 million from their Irish operation. Now as they paid €679.54 million for the buisness, at this rate it will take them 38 years to become profitable. Jesus, they got screwed.

I suppose they still have the potiential to earn alot more, I think there new advertise campaign in the Dublin area is going entice alot of people to upgrade to Digital TV. So there is plenty of scope, to increase sales etc. Still thought, I can now see why they aren't arsed with Ireland.

spongebob

....means that the Irish assets are valued at something like €250-300m now, means they are in the money in 20 years or less I should think.

i thought i should share that

M

Xian

Cable firm out of rope
Sunday Tribune, 31st March 2002

NTL chief executive Barclay Knapp has admitted that the company may go out of business unless it can find new investors to keep it going until October. With other media giants already suffering heavily it may be unlikely NTL will find a saviour.
The favourite to bail the company out is John Malone and his Liberty Media venture, which owns a stake in NTL's Irish rival Chorus and Telewest in Britain. In such a scenario the new enlarged group would control all of Britain and Ireland's cable television and telephony market. How competition authorities would view such a move remains to be seen.

SkepticOne

Originally posted by Xian
Cable firm out of rope
Sunday Tribune, 31st March 2002

The favourite to bail the company out is John Malone and his Liberty Media venture, which owns a stake in NTL's Irish rival Chorus

For some reason this does not fill me with a whole lot of enthusiasm.

and Telewest in Britain. In such a scenario the new enlarged group would control all of Britain and Ireland's cable television and telephony market. How competition authorities would view such a move remains to be seen.

That would be interesting. NTL paid 12 billion for Cable & Wireless's operation in Britain. I wonder how much they would pay buying it back.

Another person there's been speculation about is Dennis O'Brien.