The report for this quarter is more complicated than usual due to the acquisition in February of Insight Communications. Still, many investors should find the numbers reassuring — even if they prefer yesterday’s cable system results from Comcast. The No. 2 cable operator generated $453M in net income, +7.6% vs last year’s Q2, on revenues of $5.4B, +9.3%. The revenue figure is nearly bulls-eye with the Street’s expectations. And earnings, at $1.43 a share, exceeded forecasts of $1.39. Factoring out Insight, Time Warner Cable’s residential video business was down 1% to $2.6B. The total number of video subscribers fell 169,000 — more than many analysts forecast — to 12.5M. The drop “is a bit disappointing, especially as it appears that a substantial number of video losses came from double play subs, not just single plays,” Credit Suisse analyst Stefan Anninger says. But the company says that the drop in payments for subscriptions, premium channels, and VOD was partially offset by price hikes, better sales of higher-priced tiers, and higher revenues from equipment rentals. As with most cable companies these days, broadband was the star of the show. The number of Internet subs increased 59,000 to 10.7M while revenues, not including Insight, were up 7.2% to $1.2B — also helped by price increases. CEO Glenn Britt’s brief comment in the report added little insight into the numbers or his plans. He noted that the company “benefited from continued strong performance in residential high-speed data and business services, rising political advertising and our recent acquisition of Insight Communications.”
By DAVID LIEBERMAN, Financial Editor | Thursday August 2, 2012 @ 7:02am EDTTags: Time Warner Cable Earnings
For all of Deadline's headlines, follow us @Deadline on Twitter.
This article was printed from http://www.deadline.com/2012/08/time-warner-cable-q2-earnings/
Deadline Investigates CSS
SUBSCRIBE TO DEADLINE NEWS
News/Opinion PollLoading ...
By The Numbers
Box Office PollLoading ...
HBO GO Campaign – ‘True Blood’