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Telewest Comms PLC (203)

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Thursday 18 May, 2000

Telewest Comms PLC

1st Quarter Rslts 2000 - Pt.1

Telewest Communications PLC
18 May 2000

Part One

                      TELEWEST COMMUNICATIONS PLC
                       1st QUARTER RESULTS 2000


*   Telewest Active Digital sales to date of 156,000
*   Revenue per customer up 7.6% to £37.31
*   131,000 dial-up internet subscribers, up 373% year-on-year
*   Revenues up 27% to £239 million
*   EBITDA up 14% to £58 million



                                             Qtr 1      Qtr 1       Change 
                                              2000       1999    over 1999
-----------------------------------------------------------------------------
Revenue                                      £239m      £188m       +27.3% 
EBITDA (earnings before interest, tax
depreciation and amortisation)                £58m       £50m       +14.3%
EBITDA margin (EBITDA as a percentage of 
revenue)                                     24.1%      26.9%        -2.8% pts
-----------------------------------------------------------------------------
Residential Services   Revenue               £179m      £143m       +25.2% 
                       Customers              1.6m       1.4m     +203,000
                       Household Penetration 35.8%      34.7%        +1.1% pts
                       Monthly Revenue per        
                       Customer             £37.31     £34.67        +7.6% 
                       Customer Churn*       14.7%          -            - 
-----------------------------------------------------------------------------
Business Services Revenue                     £56m       £40m       +41.8% 
-----------------------------------------------------------------------------

-----------------------------------------------------------------------------
Flextech Revenues - acquired 19 April 2000**  £41m       £39m        +3.8% 
-----------------------------------------------------------------------------
* Excluding Cable London
** Included for information purposes only.  Not consolidated into Telewest
financial information

Commenting on the first quarter results, Adam Singer, Chief  Executive
of Telewest Communications, said:

'The financial performance is good: revenue is up 27% and EBITDA is up
14%.   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.

While  others have been talking about the promise of the digital  era,
we  have been delivering the next generation of broadband services  to
our  customers.  We have, to date, signed up 156,000  subscribers  for
Telewest  Active  Digital and we are on track to meet  our  target  of
500,000  customers by year end.  That roll-out is on schedule  and  is
expected  to reach 90% of our homes passed by July.  At 31 March  2000
we  had  131,000 dial-up internet subscribers following the launch  of
Surf  Unlimited  in  February.  Demand for  the  product  has  greatly
exceeded  expectations  which has caused some initial  service  issues
which  have now been corrected.  We have successfully launched  a  hi-
speed  internet  access  product - blueyonder -  which  has  generated
significant  interest.   In  July  we  are  scheduled  to  launch  our
broadband portal.

Meanwhile,  our  content division (formerly Flextech)  also  performed
well.   Flextech's  relatively traditional pay-TV business  is  adding
subscribers  and advertising revenue as the digital universe  expands.
At Flextech Interactive revenues in the first quarter have risen 71%.

In  addition, the fixed fees already committed by content providers to
Telewest's  Active Digital shopping platform amount to more than  £3.5
million  on  an  annualised  basis  (and  this  does  not  include  TV
transactions).   This  may appear a small number  in  the  context  of
Telewest,  but  it  shows  that  in our  case  e-commerce  is  already
producing real revenues.

Since  the  end of the quarter we have been busy integrating  Telewest
and  Flextech  in  a manner designed to preserve the culture  of  both
companies and create a new media entity that is more than the  sum  of
its  parts.  Our goal is to create Britain's first  'broadbandcaster'.
The  combination  of a state of the art network, top  quality  branded
broadband content and a focus on interactive product development gives
Telewest the key ingredients for success in the digital age.'


BUSINESS REVIEW

Financial

Revenues  increased  27.3% to £239 million for the  quarter  ended  31
March  2000,  from  £188 million for the same period  in  1999.   This
increase is attributable to the acquisition on 23 November 1999 of the
remaining  50% interest in Cable London (£21 million) and to increased
market  penetration in both residential and business service  markets.
In  particular,  the  growth  in residential  telephony  and  business
services  revenues  was  34.2% and 41.8%  respectively  in  the  first
quarter  of  2000 compared with the corresponding period a  year  ago.
This  strong growth has resulted from increases in minutes of use  and
higher average pence per minute charges for voice and data traffic and
the strong performance of our commercial services division.

Operating expenses, before depreciation and amortisation, increased by
32.2%  to £181 million in the first quarter of 2000 from £137  million
for  the  corresponding period in 1999.  This increase is attributable
to  the  Cable London acquisition (£14 million) and to an increase  in
selling,  general  and  administrative expenses.   This  reflects  the
increased  operating investment, both in terms of staffing levels  and
marketing,   necessary   to   roll-out  Telewest  Active  Digital  and 
Telewest's hi-speed internet service, blueyonder.

Cable  television margins increased 1 percentage point to 50% for  the
first  quarter  2000 from 49% for the fourth quarter, 1999  and  by  6
percentage  points  from  44% for the first  quarter  of  1999.   This
follows  price increases introduced on 1 February 2000 offset in  part
by increased programming costs for larger digital packages as compared
to analogue packages.

The  telephony business continues to be impacted by growth  in  mobile
penetration   and  internet  related  calls  which  are  significantly
altering  call  usage  patterns and generate lower  margins.   Average
minutes  of use were up significantly compared with last year although
telephony margins for the first quarter of 2000 were down 2 percentage
points  to  68%  from 70% for the fourth quarter  of  1999  and  by  5
percentage points from 73% for the first quarter of 1999.

EBITDA  increased by 14.3% to £58 million in the first  quarter   2000
from  £50 million in the first quarter 1999.  Adjusting for the impact
of  Cable London, EBITDA for the first quarter 2000 increased 3.2%  to
£58  million  from  £56  million in the first  quarter  1999.   EBITDA
margins  decreased  2.8  percentage points from  26.9%  in  the  first
quarter 1999 to 24.1% for the corresponding period in 2000.

Residential Services

Telewest's household penetration was up 1.1 percentage points to 35.8%
at  31  March  2000  from  34.7% at 31 March  1999,  which  represents
approximately  1.6  million homes and 4.0 million consumers.   Monthly
revenue per household increased by 7.6% to £37.31 in the quarter ended
31 March 2000 compared with the corresponding period a year ago.  This
is  a  result of an increasing proportion of homes subscribing to both
television and telephony products, up to 62% at 31 March 2000,  retail
price  increases  introduced on 1 February 2000 and higher  subscriber
revenues generated by Telewest Active Digital packages.

Customer  or household relationship churn which has been reported  for
the  first time this quarter is currently 14.7% on a rolling 12  month
basis  (excluding  Cable  London, which was acquired  on  23  November
1999).  The measurement of household churn allows us to be compared to
our  competitors in the UK.  This measures the rate at which customers
disconnect  from  all  Telewest services  eliminating  double-counting
caused by customers moving between single and dual service levels  and
more accurately reflecting the customer loyalty we are achieving.   We
will continue to report the product churn numbers separately.

As  at  31  March 2000, Telewest's television product penetration  was
25.6%,  a  1.1  percentage  points increase  over  television  product
penetration at 31 March 1999.  Telewest Active Digital sales  to  date
total  156,000,  of which 87% or 136,000 have been installed,  and  of
which  51% are subscribers new to Telewest.  The roll-out of  Telewest
Active  Digital is progressing to schedule and this service should  be
available to over 90% of all Telewest homes passed by the end of  June
2000.

Telewest's  range  of  interactive  services continues  to  grow  with
agreements  now  signed  with  80  content  partners.  Norwich  Union,
Interflora and CNN are some of the brands which have been added to the
list  of  household names that already include W H Smith,  Woolworths,
Abbey  National and Ladbrokes. Telewest expects to continue adding  to
the  list  and  develop the range and depth of its  service.  Telewest
believes  that  this  is an exciting new revenue opportunity  and  has
already  secured annualised fixed fees of £3.5 million,  under  signed
contracts from content providers. Telewest's video-on-demand trial  is
underway  and is progressively being scaled up to include all Telewest
Active Digital subscribers in the South East franchise area.

Residential  telephony product penetration increased to  32.3%  at  31
March  2000, up 1.8 percentage points on a year earlier.  With  second
line   penetration  at  12.2%,  this  represented  over  1.6   million
residential telephone lines as at 31 March 2000.

Surf Unlimited, the UK s first unmetered internet access service,  was
launched  in  February  2000.   At 31 March  2000,  dial  up  internet
subscribers  increased to 131,000, an increase of 373% compared  to  a
year earlier.

Blueyonder,  Telewest's hi-speed internet service  for  home  personal
computers, was launched in March 2000.  Initial consumer interest  has
been  positive  and  the development of  Telewest's  broadband  portal
continues on schedule for launch in July 2000.

In  April  2000,  OFTEL  confirmed Telewest as  one  of  the  selected
operators  for ADSL trials under Option 2, full local loop  unbundling
of BT s network.  Telewest is well placed to commence Option 2 trials.
It  already  provides broadband interactive services  over  its  cable
networks and its customer services and IT infrastructure should enable
cost effective delivery over ADSL.

Business Services

Business  services  revenues  for the  quarter  ended  31  March  2000
totalled  £56 million, up 42% on the corresponding period a year  ago.
As  at  31  March  2000  Telewest had over  60,000  business  customer
accounts and over 300,000 business telephony lines.

Business  services revenues include £13 million of  revenues  for  the
first  quarter  2000 relating to Telewest's commercial  services  unit
which  provides  national  network services  to  third  parties.   The
commercial  services unit was established in January 1999 and  had  £2
million revenues for the first quarter of 1999.

In  the  third  quarter  2000 Telewest intends to  launch  a  hi-speed
internet service specifically tailored to meet the needs of the  small
and  medium  sized enterprise.  This service will be  supported  by  a
broadband  portal  leveraging Telewest's investment  in  its  hi-speed
internet  network and should provide a platform from which to  develop
an Application Service Provision business.

Flextech (Content Division)

Our   merger  with  Flextech  was  completed  on  19  April  2000  and
accordingly,  the  results for Flextech do  not  form  part  of  these
results.  Set out below is a summary of the key operational statistics
for  Flextech in the first quarter 2000.  In the future,  the  results
and  activities  of  Flextech will be reported  as Telewest's  content
division.

Flextech's  turnover,  including its share of joint ventures' revenue,
increased by 3.8% to £41 million in the first quarter of 2000 compared
with  the  corresponding period a year earlier.  This growth has  been
driven by a 23% increase in the UK multi-channel market to 8.0 million
homes  at  31  March 2000 up from 6.5 million homes  a  year  earlier,
offset  in  part  by  lower  unit revenues from  digital  homes  which
increased  by 2.8 million homes to 3.4 million at 31 March  2000  from
0.6 million a year earlier.

Advertising  revenues (including Flextech's share  of  joint  ventures
advertising revenue) increased 17% to £14 million in the first quarter
2000,  from  £12  million in the same period  a  year  ago.   Flextech
interactive  revenues  increased 71% to  £0.6  million  in  the  first
quarter 2000.  Flextech's EBITDA loss reduced to £1.5 million  in  the
three months ended 31 March 2000 from £3.2 million in the three months
ended 31 March 1999.

In  addition  to this EBITDA loss, Flextech sold, in January  2000,  a
12.5%  interest  in TV Travelshop to Kuoni for cash proceeds  of  £6.6
million recognising a pre-tax profit on disposal of £10 million.

Corporate Developments

On  25 January 2000, Telewest raised net cash proceeds of £534 million
from the issue of $450 million 11 3/8% Senior Discount Notes due 2010,
£180  million  9  7/8% Senior Notes due 2010 and $350 million  9  7/8%
Senior  Notes due 2010.  Approximately £126 million of these  proceeds
were  used to repay the indebtedness of Cable London and the remainder
has  been  or  will be used for general corporate purposes,  including
operating  and  capital requirements associated with the  roll-out  of
Telewest  Active Digital and blueyonder and the temporary or permanent
repayment of additional debt.

On  6  March  2000,  Telewest and Andersen  Consulting  announced  the
formation   of   a  new  company  to  develop  interactive   broadband
applications.   The  joint  venture  intends  to  provide  consultancy
services  and  to develop, customise and license innovative  solutions
for the rapidly emerging broadband industry.

Management Structure

Following  the  Flextech  merger,  the  senior  management  team   was
reorganised to reflect Telewest's emergence as a vertically integrated
communications  and  media group.  Mark Luiz became  Chief  Executive,
Content  Division  and  replaces Brent  Harman  who  is  returning  to
Australia.   Philip Jansen assumed responsibility for our  residential
services  division  as Managing Director, Consumer Services  and  Adam
Smith became Managing Director, Business Services.

As  announced  on  11  April  2000,  Tony  Illsley,  previously  Chief
Executive,  decided  to  leave the group to  pursue  other  interests.
MediaOne  also appointed Simone Brych-Nourry, their third  shareholder
representative,  to  the  Board  in  accordance  with  their  existing
shareholder  rights, effective 18 May 2000.  Simone  Brych-Nourry  has
been Chief Counsel of MediaOne International since December 1994.

Outlook

Telewest is now a leading provider of broadband services in the UK.
With product development initiatives progressing to schedule, the
necessary increase in operating capacity complete, the Flextech
content business integration well on track and a new senior management
team in place, Telewest believes it is well positioned.



Enquiries to  Telewest Communications plc
              Charles Burdick,   Group Finance Director         01483 750900
              Parm Sandhu,       Director, Investor Relations   01483 587061

              and at

              Brunswick
              Alison Hogan                                      020 7404 5959

Notes:

The following is included in connection with legislation in the United
States,  the  Safe  Harbour Statement under the US Private  Securities
Litigation Reform Act of 1995  The foregoing includes certain  forward
looking statements that involve various risks and uncertainties  which
could  lead  to  actual  results significantly  different  than  those
anticipated  by Telewest. For a discussion of certain of  these  risks
and uncertainties see the Company's Registration Statement on Form F-4
filed with the US Securities and Exchange Commission on 6 March 2000.

Unless  otherwise  specified, all references to financial  information
are on a UK GAAP basis.


Telewest Communications plc
Operating Statistics - Owned and operated
-----------------------------------------------------------------------------
                                                    Actual     Pro forma (1)
RESIDENTIAL SERVICES                         Net additions     Net additions
                                                   Q1 2000           Q1 1999
                                                                   
   Homes Marketed                                    3,770            27,417
                                                                   
   Customer Homes Added                              6,791            25,576
                                                                   
   Cable Television Subscribers                    (16,466)           31,391

   Telephony Subscribers                            16,362            28,242
   Telephone Lines                                  21,614            50,827
                                                                   
   Internet Subscribers                             71,109             5,454
-----------------------------------------------------------------------------
                                            As at 31 March    As at 31 March
                                                      2000              1999
                                                    Actual     Pro forma (1)
                                                                   
   Cable television and residential             
    telephony subscribers*                         979,796           890,425
   Cable television only subscribers               159,298           187,114
   Residential telephony only subscribers *        453,263           446,899
   Total residential customers                   1,592,357         1,524,438

* Includes subscribers also subscribing for internet services.
                                                                   
   Homes marketed                                4,447,594         4,395,131
   Household penetration                             35.8%             34.7%
   Customer churn (excluding Cable London)           14.7%                 -
-----------------------------------------------------------------------------
   Cable television subscribers                  1,139,094         1,077,539
   Active Digital Subscribers                      103,828                 -
   Cable television penetration                      25.6%             24.5%
   Churn rate                                        26.6%             27.5%
----------------------------------------------------------------------------- 
   Residential telephony subscribers             1,433,059         1,337,324
   Residential telephony penetration                 32.3%             30.5%
   Residential telephone lines                   1,607,624         1,442,444
   Second line penetration                           12.2%              7.9%
   Churn rate per line                               20.7%             21.2%
----------------------------------------------------------------------------- 
   Total internet subscribers                      131,415            27,775
----------------------------------------------------------------------------- 
                                                                   
                                                                   
BUSINESS SERVICES                                   Actual     Pro forma (1)
                                             Net additions     Net additions
                                                   Q1 2000           Q1 1999
-----------------------------------------------------------------------------
   Business customer accounts                        2,871             1,473
   Business telephony lines                         (1,923)           20,792
-----------------------------------------------------------------------------
                                            As at 31 March    As at 31 March
                                                      2000              1999
                                                    Actual     Pro forma (1)
-----------------------------------------------------------------------------
   Business customer accounts                       61,218            47,137
   Business telephony lines                        305,167           254,553
   Average number of lines per
   customer account                                    5.0               5.4
   Annualised revenue per customer account          £3,471            £3,718
-----------------------------------------------------------------------------

Telewest Communications plc 
As at 31 March 2000
                         Telewest Franchises (2)  Cable London Franchises (3) 
                                31 March                   31 March
                            1999        2000            1999        2000
-----------------------------------------------------------------------------
Number of franchises          37          37               4           4
Residential customers  1,389,737   1,457,429         134,701     134,928
Residential dual 
 customers               828,434     908,171          61,991      71,625
Percentage of dual 
 customers                 59.6%       62.3%           46.0%       53.1%
Monthly revenue per 
customer                  £34.68      £36.98          £39.21      £41.98
----------------------------------------------------------------------------- 
CABLE TELEVISION                                   
Homes passed           4,222,421   4,271,666         397,455     437,622
Homes passed and 
 marketed              4,013,298   4,059,341         381,833     388,253
Subscribers              981,044   1,037,235          96,495     101,859
Penetration rate (5)       24.4%       25.6%           25.3%       26.2%
Average monthly revenue 
 per subscriber (6)       £21.89      £20.72          £23.36      £19.80
Average churn rate (7)     27.1%       26.2%           31.9%       31.2%
----------------------------------------------------------------------------- 
RESIDENTIAL TELEPHONY                                          
Homes passed           4,043,943   4,093,182         397,455     437,622
Homes passed and 
 marketed              3,998,888   4,050,061         381,833     388,253
Subscribers            1,237,127   1,328,365         100,197     104,694
Penetration rate (8)       30.9%       32.8%           26.2%       27.0%
Lines                  1,333,225   1,490,917         109,219     116,707
Average monthly 
 revenue per line (9)     £20.30      £21.57          £27.92      £28.74
Average churn rate 
 per line (10)             20.6%       20.4%           28.9%       24.1%
----------------------------------------------------------------------------- 
BUSINESS SERVICES                                          
Business customer 
 accounts                 43,701      57,158           3,436       4,060
Business lines           234,454     277,472          20,099      27,695
Average business lines 
 per customer (11)           5.4         4.9             5.8         6.8
Average monthly revenue 
 per business line (12)   £59.49      £50.30          £57.56      £49.69
Average annualised revenue 
 per customer (13)        £3,703      £3,240          £3,920      £4,371
----------------------------------------------------------------------------- 

Telewest Communications plc 
As at 31 March 2000
                                                 Telewest Group Franchises (4)
                                                           31 March 
                                                        1999        2000
                                               Pro forma (1)       
Number of franchises                                      41          41
Residential customers                              1,524,438   1,592,357
Residential dual customers                           890,425     979,796
Percentage of dual customers                           58.4%       61.5%
Monthly revenue per customer                          £34.96      £37.31
----------------------------------------------------------------------------- 
CABLE TELEVISION              
Homes passed                                       4,619,876   4,709,288
Homes passed and marketed                          4,395,131   4,447,594
Subscribers                                        1,077,539   1,139,094
Penetration rate (5)                                   24.5%       25.6%
Average monthly revenue per subscriber (6)            £22.02      £20.63
Average churn rate (7)                                 27.5%       26.6%
----------------------------------------------------------------------------- 
RESIDENTIAL TELEPHONY                     
Homes passed                                       4,441,398   4,530,804
Homes passed and marketed                          4,380,721   4,438,314
Subscribers                                        1,337,324   1,433,059
Penetration rate (8)                                   30.5%       32.3%
Lines                                              1,442,444   1,607,624
Average monthly revenue per line (9)                  £20.87      £22.10
Average churn rate per line (10)                       21.2%       20.7%
-----------------------------------------------------------------------------
BUSINESS SERVICES                            
Business customer accounts                            47,137      61,218
Business lines                                       254,553     305,167
Average business lines per customer (11)                 5.4         5.0
Average monthly revenue per business line (12)        £59.34      £50.24
Average annualised revenue per customer (13)          £3,718      £3,471
-----------------------------------------------------------------------------

Telewest Communications plc
Owned and Operated Franchises
As at 31 March 2000

(1)  Operating statistics on a proforma basis assume the Cable London
     acquisition had taken place on 1 January 1999.

(2)  Represents the 37 cable franchises owned and operated by the Telewest
     Group following the General Cable merger and the Birmingham acquisitions
     (collectively the 'Telewest Franchises').
     
(3)  Consists of the four cable franchises owned and operated by Cable London
     (collectively, the 'Cable London Franchises'). Prior to 23 November 1999,
     these franchises were owned approximately 50% by Telewest and 
     approximately 50% by NTL (Triangle) LLC as successor to Comcast, a wholly
     owned subsidiary of NTL, Inc. They are now owned 100% by the Telewest
     Group.
     
(4)  Represents the Telewest Franchises and the Cable London Franchises, (the 
     'Telewest Group franchises').
     
(5)  Cable television penetration rate at a specified date represents (i) the
     total number of cable television customers at such date, divided by (ii)
     the total number of homes passed and marketed for cable television at
     such date.
     
(6)  Average monthly revenue per subscriber for each period represents (i) the
     average monthly cable television revenue for such period, divided by (ii)
     the average number of cable television subscribers in such period.
     
(7)  Average cable television churn rate for the period represents (i) the
     total number of cable television customers who terminated basic service 
     or whose service was terminated during such period, divided by (ii) the
     average number of cable television customers in such period.
     
(8)  Residential telephony penetration rate at a specified date represents (i)
     the total number of residential cable telephony customers at such date,
     divided by (ii) the total number of homes passed and marketed for
     residential cable telephony at such date.
     
(9)  Average monthly revenue per residential line for each period represents
     (i) the average monthly residential cable telephony revenue for such
     period, divided by (ii) the average number of residential cable telephony
     lines in such period.
     
(10) Average residential telephony churn rate per line for the period 
     represents (i) the total number of residential cable telephony lines
     terminated by customers of the company providing the lines during such
     period, divided by (ii) the average number of residential cable telephony
     lines in such period.
     
(11) Average number of business lines per customer at a specified date
     represents (i) the number of business cable telephony lines at such date,
     divided by (ii) the number of business cable telephony customer accounts
     at such date.
     
(12) Average monthly revenue per business line for each period represents (i)
     the average monthly business cable telephony revenue for such period,
     divided by (ii) the average number of business cable telephony lines in
     such period.
     
(13) Average annualised revenue per customer account for each period
     represents (i) the average monthly business services revenue for each
     period divided by (ii) the average number of business services customer
     accounts in such period, multiplied by twelve months.


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