NTL Ireland has disclosed that it cut off 16,000 customers as part of its new stricter credit policy during the three months to the end of September.The cable company now has 346,200 customers compared to the 362,400 customers that it registered in the previous quarter.
Meanwhile, NTL Group, its parent which operates in Britain and Ireland, said it would begin taking in more cash than it spends for the first time in its history, once it collects £824 million (€1.2 billion) from a share issue scheduled for this month.
The firm spent much of the last decade borrowing billions to fund an acquisition spree that kept it deep in the red until it refinanced its debts last year.
Money from the $1.4 billion rights issue, due for completion by November 17th, will pay down expensive debts and lead to annual savings of £124 million on interest payments, NTL said.
"As a result of these cash interest savings, NTL expects to become free cash flow positive on an annual basis," the company said in a statement, which accompanied the formal release of its third-quarter results first announced on October 31st. - (Additional reporting Reuters)
