CABLE operator NTL last night posted narrower second quarter losses after adding a record number of new customers.

The New York-listed group, which employs about 450 people in a customer services centre in Stockton, said it signed up 205,500 new users in the three months to June 30.

But it warned the pace may slow as it becomes more selective about the type of customers it takes on.

NTL, based at Hook, Hampshire, said it would operate stricter credit screening in an attempt to decrease bad debt - a move that could lower the number of gross additions in the near term.

It said the policy was right for the long-term health of the business.

Although revenues slipped 2.3 per cent to £482.5m during the quarter, losses from continuing operations narrowed to £66.1m from a deficit of £267m last time.

The improvement was helped by tighter cost controls, a reduction in interest payments and the impact of a debt restructuring on last year's figures.

There was a 2.5 per cent rise in revenues to £378.9m at NTL's consumer division, which supplies broadband Internet, telephone and TV services to households.

Across the first half of the year, losses on continuing operations narrowed to £132m from £345.4m last time.

NTL announced yesterday it was speeding up its basic broadband connection in a move that will help customers download better quality video and television.