Financial Review(1)

 

Revenue Summary (in GBP millions)

 

                           Q1-2003  Q4-2002  Q3-2002  Q2-2002  Q1-2002

---------------------------------- -------- -------- -------- --------

 

HOME

On-Net                   GBP328.9  GBP322.4 GBP314.6 GBP325.8 GBP332.0

                            

Wholesale & Off-Net          33.2     33.4     35.8     32.8     30.0

                          -------- -------- -------- -------- --------

Total                       362.1    355.8    350.4    358.6    362.0

 

BUSINESS                     75.0     74.9     76.7     78.1     83.0

 

BROADCAST

Media                        39.7     39.5     40.4     43.3     41.2

Wireless                     11.0     11.2     11.1     10.3     10.4

Public Safety                13.6     12.5     11.9     12.7     12.8

                          -------- -------- -------- -------- --------

Total                        64.3     63.2     63.4     66.3     64.4

 

CARRIERS                     27.6     26.8     28.5     31.3     33.0

 

IRELAND                      17.5     15.4     15.7     14.7     13.7

                          -------- -------- -------- -------- --------

 

Revenues                  GBP546.5 GBP536.1 GBP534.7 GBP549.0 GBP556.1

 

Accounting Adjustments          -     (2.7)       -        -        -

                          -------- -------- -------- -------- --------

 

TOTAL REVENUES            GBP546.5 GBP533.4  GBP34.7 GBP549.0 GBP556.1

                          ======== ======== ======== ======== ========

 

    (1) In Q1 2003, NTL implemented a reorganization of certain of its

        business units. The associated changes included moving the

        Company's Wholesale Internet division from NTL Business to NTL

        Home, its Public Safety division from NTL Business to NTL

        Broadcast and creating NTL Carriers by merging its carriers

        division with its mobile division and removing both from NTL

        Business. In addition, the allocation of certain costs from

        Shared Services to the various business units and the

        allocation of costs between NTL Home and NTL Business have

        changed. Finally, Corporate Expenses are now included in

        Central Support. The Revenue and EBITDA analysis in the

        Financial Review is presented in the revised structure and

        prior periods have been restated accordingly.

 

 

EBITDA Summary (in GBP millions)(2)

 

                          Q1-2003  Q4-2002   Q3-2002  Q2-2002  Q1-2002

--------------------------------- -------- --------- -------- --------

 

HOME

On-Net                   GBP143.7 GBP147.8  GBP138.1 GBP139.0 GBP133.7

Wholesale & Off-Net          9.0     11.8      13.4     13.1      8.5

                         -------- -------- --------- -------- --------

Total                      152.7    159.6     151.5    152.1    142.2

 

BUSINESS                    21.1     21.6      18.0     21.1     19.9

 

BROADCAST

Media                       20.6     18.1      20.2     23.5     22.3

Wireless                     5.7      4.7       6.0      5.0      4.0

Public Safety                2.3      1.1       1.9      1.9      1.9

                         -------- -------- --------- -------- --------

Total                       28.6     23.9      28.1     30.4     28.2

 

CARRIERS                    22.2     22.4      24.5     25.0     27.0

 

SHARED SERVICES

Networks                   (16.9)   (13.0)    (14.0)   (16.8)   (15.3)

Central Support/IT         (56.1)   (51.0)    (48.9)   (48.6)   (50.4)

                         -------- -------- --------- -------- --------

Total                      (73.0)   (64.0)    (62.9)   (65.4)   (65.7)

 

IRELAND                      4.9      3.5       4.5      4.2      2.6

                         -------- -------- --------- -------- --------

 

EBITDA                   GBP156.5 GBP167.0  GBP163.7 GBP167.4 GBP154.2

 

Accounting Adjustments         -     (4.0)        -        -        -

                         -------- -------- --------- -------- --------

 

TOTAL EBITDA             GBP156.5 GBP163.0  GBP163.7 GBP167.4 GBP154.2

                         ======== ======== ========= ======== ========

 

    (2) Q4 2002 includes the net effect of the Q4 2002 Accounting

        Adjustments of GBP4.0 million. This amount includes an

        adjustment for the reallocation of certain expenditures from

        capital to expense of approximately GBP41.2 million and an

        adjustment for the release of certain provisions, and the

        related increase in EBITDA, in the amount of approximately

        GBP43.4 million. These two adjustments relate principally to

        prior periods. Q1, Q2 and Q3 2002 EBITDA would be reduced by

        approximately GBP10 million per quarter if the reallocation of

        the GBP41.2 million from capital to expense was reflected in

        the appropriate quarters. The GBP43.4 million increase in

        EBITDA would not be reallocated to Q1, Q2 and Q3 2002 because

        these provisions relate to periods prior to 2002.

 

     Corporate expenses are now included in Central Support. Prior

                periods have been restated accordingly.

 

      Financial Results for the three months ended March 31, 2003

                 (in $ millions except per share data)

 

                                                    Three Months Ended

                                                         March 31,

                                                      2003     2002

                                                    ------------------

 

Revenues                                              $875.9   $792.9

 

Costs and expenses

Operating expenses                                     408.6    380.9

Selling, general and administrative expenses           216.5    192.0

                                                    ------------------

                                                       625.1    572.9

                                                    ------------------

EBITDA                                                 250.8    220.0

 

Other charges                                            2.9      1.6

Depreciation and amortization                          309.0    337.4

                                                    ------------------

Operating (loss)                                       (61.1)  (119.0)

 

Other income (expense)

Interest income and other, net                           2.7      9.4

Interest expense                                      (176.5)  (324.8)

Recapitalization expense                                   -    (32.1)

Share of income from equity investments                  0.1      0.3

Foreign currency transaction (losses)                   (3.4)    (5.0)

                                                    ------------------

(Loss) before income taxes                            (238.2)  (471.2)

Income tax (expense) benefit                           (16.2)    11.3

                                                    ------------------

Net (loss)                                           $(254.4) $(459.9)

                                                    ==================

 

Basic and diluted net (loss) per common share         $(5.04)  $(9.11)

                                                    ==================

 

Weighted average shares                                 50.5     50.5

                                                    ==================