NTL Ireland generated €27.7 million revenue in the first quarter, an increase of 10 per cent on the same period of 2004, due to an uptake of digital television and higher prices.

The State's biggest cable firm, which is being sold to pan-European operator UGC for €325 million, also added 2,400 television subscribers, bringing its total customer base to 350,100.

Results published yesterday by its parent, NTL, show a 31 per cent increase in digital television subscribers in the first quarter, compared to the first quarter of 2004. Some 102,000 customers have upgraded to digital television, which offers better picture and sound quality and additional channels.

The results also show that the firm added 2,500 broadband customers in the first quarter and now supplies high-speed internet services to 10,000 homes. NTL's broadband service is available to about 100,000 Irish households.

Monthly customer churn to other operators declined to 0.7 per cent in the first quarter, down from 1.1 per cent in the same quarter last year.

NTL Group, which is rumoured to be pursuing merger negotiations with British rival Telewest, reported a loss of £62.6 million (€91.6 million) from a loss of £75.5 million in the year-ago period.

Meanwhile, UGC, which is planning to merge Chorus with NTL Ireland, reported a net loss of $3 million (€2.33 million) in the first quarter, down from $150 million in the same period a year ago.