Telewest's losses deepen

Telewest is increasing its number of digital subscribers

Cable operator Telewest Communications has announced slightly deeper first quarter losses as a result of the cost of acquisitions and new services.

The company made first quarter losses of £137.3m from £135m a year ago. On a more positive note, Telewest posted a 27% rise in revenues to £238.8m as its digital services expand.

"The financial performance is good," said Telewest Chief Executive Chief Executive Adam Singer.

"But what I think is noteworthy is that these results have been achieved during a period when the company has been accelerating the rollout of its new digital service and launching important broadband products," he said.

Flextech purchase

In April, Telewest bought programme distributor Flextech for £2bn to help expand its programming.

Since then, the company said it had been working on integrating Flextech into its operations, with which it aims to create the UK's first "broadbandcaster."

Telewest said it was on track to meet its target of 500,000 customers by year end for its seven-month old digital service.

It already has 156,000 customers for the service.

It also said it had 131,000 internet subscribers following the launch of its Surf Unlimited internet service in February.

Telewest is also expanding its new interactive service launched in March and has signed up a further 13 brands, including CNN, Cartoon Network and GE Financial Insurance.

It now has a total of 80 content providers and brands on its interactive platform.