NTL yesterday posted narrower second quarter losses after adding a record number of new customers.

The New York-listed group said it signed up 205,500 new users in the three months to June 30 - but warned this pace may slow as it becomes more selective about the type of customers it takes on.

NTL said it would operate stricter credit screening in a bid to decrease bad debt, in a move that could lower the number of gross additions in the near term.

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

Adding in disconnections, NTL said its residential base grew by 66,600 customers to

3.26 million, a 5.8 pe cent increase on the same quarter a year earlier.

Although revenues slipped

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

The improvement was helped by tighter cost controls, a reduction in interest payments and the impact of a debt restructuring on 2004' s figures.

The group's business division was responsible for the fall in revenues after last year's figures were boosted by Virgin.net. These revenues are now classed as consumer rather than business after NTL acquired it in November 2004.

Revenues at the business arm, which supplies retail and wholesale voice, data and internet products and services to public and private organisations, fell 16.5 per cent to £103.6 million.

They were also hit by factors such as the end of a contract with Vodafone.