Cable and Wireless in talks to buy Telewest.................
digitaltheater.com
CWC says digital cable TV to be commercially available from July
Date:06-May-99
LONDON, AFX via NewsEdge Corporation : Cable & Wireless Communications PLC said its digital cable television service will be commercially available from July 1.
The company said it is investing an additional 60 mln stg in digital services over the next 12 months with the creation of 2000 new jobs over the coming two years.
It said extensive commercial trials of its digital television services will begin in Manchester today, while extensive commercial trials will start in London and surrounding area from July 1.
CWC said digital television and digital interactive services will be available in London and surrounding areas, and in Manchester and surrounding areas, from October.
By the end of this year, CWC said digital services will be available to over 50 pct of homes marketed in the company's franchise areas, corresponding to around 2 mln households.
The company today announced its results for the year to end-March, which showed pretax profits of 173 mln stg before exceptionals items, up from 155 mln in the previous year and below analysts' expectations of 175-185 mln.
There was a pretax profit after exceptionals of 140 mln stg, up from a loss of 49 mln, and also below market forecasts of 145-155 mln.
Revenue was in line with analysts' forecast and rose 15 pct to 2.62 bln stg.
CWC said the planned investment in digital TV will reduce pretax profit in 1999/2000 to "significantly below" 1998/1999 levels.
"The success of digital television will improve the prospects for profitable growth in subsequent years," it said.
CWC and Telewest Communications PLC announced on April 6 that discussions were being held between them and certain other major shareholders concerning corporate options that included the transfer of various businesses of CWC and Telewest.
CWC said today that discussions are continuing and that any transaction, if concluded, could involve an offer, merger or corporate restructuring.
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[Copyright 1999, Agence France Press/Financial Times] Article Found In High-Definition Television Quick Search
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