The economy is weak, but you wouldn’t know it from Time Warner Cable’s 2Q earnings. The No. 2 cable operator reports net income of $420M on revenues of $4.9B, up 4.4% vs the same period last year. Earnings, at $1.24 a share, zoomed past the $1.16 that analysts expected. The company attributes the increase to strong sales of business and residential phone and broadband services. The core home pay TV business didn’t help, though: Time Warner Cable lost 130,000 subscribers in the quarter ending up with 12.1M. It also says that sales for VOD and premium channels were down. Revenues for residential video, at $2.68B, only fell 0.1% due to a price hike and company efforts to upsell customers to higher-priced service tiers. While that may worry investors, they may be more impressed by the fact that Time Warner Cable returned $1B to them in the quarter — $863M from share repurchases and $163M from a dividend. The company is authorized to buy back an additional $1.8B in stock.


They’re losing TV subscribers by the buckets for many reasons, but the current one sticking in my craw is their refusal to get onboard with HBOGo. Bastids.
You might have mentioned that Time Warner Cable has shed thousands of employees over the past year as well….