NTL and Virgin Group are still in talks over a tie-up

Losses for the quarter rose to �56m ($97m), up from �52m a year earlier.

Fourth-quarter revenues fell 5.4% to �484.6m following a drop in the amount of phone usage by its customers.

Though the number of subscribers to its network grew by 20,600, the average amount of revenue per user fell to �38.98 from �39.08.

The number of people leaving the service each month - the churn rate - was flat at 1.5%.

Talks ongoing

NTL said that 29% of its residential customers, totalling about 1.8 million, now subscribe to the "triple-play" package of TV, telephone and internet services, a rise of 27% from a year ago.

Last month, NTL raised its takeover offer for Virgin Mobile to �961m. The two companies are in talks about the improved offer after Virgin Mobile rejected NTL's original �871m bid.

If the deal goes ahead NTL will use the Virgin brand to offer internet access, TV and fixed line and mobile telephony.

Meanwhile, NTL's merger partner Telewest added 20,000 subscribers in the fourth quarter, taking its total to about 1.8 million, while its churn rate fell to 1.2%.

Telewest's average revenue per user was flat at �45.17.

Both companies are recovering from a downturn, which saw NTL emerge from bankruptcy protection in 2003 and Telewest undergo restructuring.

Although NTL and Telewest's operations are focused in the UK, shares in both companies are traded in New York.