|
UPC posts loss, pays debt
|
 |
August 14, 2001: 7:16 a.m. ET
Europe's biggest cable operator loss widens, pays more interest on debt
|
LONDON (CNN) - Debt-laden cable firm United Pan-Europe Communications fell to a deeper second-quarter loss as interest charges and investment costs rose.
The Dutch-based company has turned from the stock market's darling to a pariah in 18 months, its shares plunging 90 percent this year alone, as it built up debts of  8 billion by buying cable operators across Europe.
Now the continent's biggest cable operator, UPC said on Tuesday its quarterly loss widened to of 563 million ($505 million) before one-time items, from 368 million a year ago.
After taking account of one-time items, the loss widened to 863 million. That includes a 300 million charge relating to the purchase of Cignal by UPC subsidiary Priority Telecom.
UPC and its Chief Executive Mark Schneider have come under intense pressure from investors to turn the loss making business to profitability.
The company is now turning its attention to driving up revenue, and said it was sticking to its target of attracting 250,000 subscribers to it digital television service by the end of the year.
Shares of UPC, 51 percent-owned by Denver, Colo.-based UnitedGlobalCom (UCOMA: Research, Estimates), fell 6 percent to 1.09, valuing the company at 511 million. The company's stock has fallen about 99 percent from a peak 83.32 in March, 2000.
Its collapsing share price has put paid to the acquisition of SBS Broadcasting for $2.8 billion and a joint venture with Excite@Home (ATHM: Research, Estimates). UPC backed out of both transactions in the course of 2000.
CEO Schneider is the son of UnitedGlobalCom's chief executive Gene Schneider. Microsoft (MSFT: Research, Estimates) owns 7.9 percent of the company.
UPC said it would report a profit before interest, taxation, depreciation and amortization costs next year. The company also reiterated sales this year should rise to between 1.4 billion and 1.5 billion euros from 1 billion in 2000.
The company, which has 7.1 million subscribers, said that for the whole of 2001, it expects its loss before interest, tax, depreciation and amortization to narrow to 200 million from 363 million. 
|
|
|
|
|
 |
|
