HAMPSHIRE cable company NTL has signalled progress towards a £1 billion sale of its transmission towers after reporting strong interest from potential bidders.

The group said it remained on course to separate the broadcast division by the end of the year, following a strong start to an auction process.

The operation, thought to be on the radar for a number of venture capital firms, beams television pictures to domestic aerials from masts around the UK.

Earlier this year, Crown Castle sold its network of mobile phone and broadcasting masts in a £1 billion deal with National Grid Transco.

Progress on the towers sale came as NTL continued its steady upward climb by posting third-quarter results showing a nine per cent rise in revenues from its core Home division to £405m.

Overall, net losses for the cable giant, which employs thousands of people across the county, including at Winchester and its Hook headquarters in the north of Hampshire, reduced by 19.4 per cent on a year earlier to £95.4m. Profits also lifted to £180.2m, from £176.5m in the same three months of 2003.

Despite the improvement, chief executive Simon Duffy said the trading environment had become even more intense during the quarter.

He also reported progress on previously announced plans to merge 13 call centres into three bases at Manchester, Swansea and Bellshill in Glasgow.

NTL emerged from bankruptcy protection last year before moving to boost its financial position and overhauling its call centre operations.