|
UPC beats expectations
|
 |
August 15, 2000: 4:00 a.m. ET
Stock jumps after European cable firm posts narrower-than-expected 2Q loss
|
LONDON (CNNfn) - United Pan-Europe Communications NV, Europe's largest cable operator, reported Tuesday that its second-quarter net loss was five times bigger than last year's as it spent heavily on new technology, but the results were much better than analysts had expected.
The Dutch company's shares surged 7.2 percent in early trading in Amsterdam, rising  1.87 to 27.12.
The cable TV, Internet and telecom company, which is 51 percent-owned by Denver cable firm UnitedGlobalCom (UCOMA: Research, Estimates) Inc., lost 368.2 million ($331 million), or 0.84 per diluted share in the April-June period. That compares with a loss of 72.9 million, or 0.19 per share, in the year-earlier period.
Analysts expected a loss ranging from 403 million to 528 million, according to a Reuters survey.
Second-quarter revenue soared 186 percent to 238 million.
The company said operating efficiencies would help reduce its losses before interest, tax, depreciation and amortization. It said EBITDA losses grew to 78 million in the second quarter, compared with a loss of 877,000 in the second quarter of 1999.
"We have continued to position the business for future growth and success and our second quarter and half-year results confirm that this is on track today," said John Riordan, UPC president.
The company also said the introduction of digital set-top boxes was still on schedule for September in Amsterdam, although it did not discuss the reported problems it was having with the software provided Microsoft Corp. (MSFT: Research, Estimates), which holds an 8 percent stake in the company.
UPC now serves nearly 7 million basic cable subscribers, including its announced acquisitions. The number of Internet subscribers grew to 230,000 in the second quarter from 181,000 in the first quarter. Telephony customers increased from 294,000 in the first quarter to 362,000 at the end of second quarter.
In June, the company announced it would buy a 25 percent stake in Telewest, the U.K.'s second-largest cable operator. Last month, UPC agreed to merge its broadband Internet business, Chello, with the non-U.S. operations of Redwood City, Calif.-based Internet service provider Excite@Home, forming a new venture focused on providing high-speed Web access outside of North America.
UPC (UPCOY: Research, Estimates) shares also trade on the Nasdaq exchange in the United States. Shares edged up 3/8 to 23-1/2 Monday. The company has been trading near year-long lows. It has traded in a range of 16-3/4 to 79-7/16 over the past year. 
-- from staff and wire reports
|
|
|
|
|
|
UPC
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
