Broadband demand boosts Telewest

TELEWEST Communications, the debt-laden cable group that has parted company with chief Adam Singer, has trimmed its half-year pre-tax loss to £239 million from £413 million after posting strong growth in demand for its broadband internet services.

But it has also revealed that total debt had jumped another £500 million in the six months to 30 June, taking the figure to £5.65 billion. It has cash of £341 million.

Telewest said earnings before interest, tax and depreciation rose 30% from the same time last year to £184 million. This combined with foreign exchange gains, proceeds from the sale of investments and lower goodwill charges to produce the improved bottom line. It also confirmed that Singer, who is thought to have clashed with the rest of the board, had been replaced by finance director Charles Burdick.

Singer sparked outrage earlier this year when it was revealed he reaped a 50% rise in his salary to £780,000 in 2001. Shareholders' anger was heightened when it emerged that he and three fellow directors shared bonuses worth £690,000 despite the crash in the share price.

Today's accounts did not disclose whether Singer will get a payoff.

Telewest said its residential business suffered in the first half of this year at the hands of higher prices and its emphasis on broadband.

The company slashed its payroll by 15% in the second quarter and reduced its annual capital spending rate from a forecast £600 million to £470 million.