Insight Powers Time Warner Cable in Q4Basic Video Losses Improve 1/31/2013 3:15 AM Eastern
Time Warner Cable reported stronger than expected earnings on Thursday morning, fueled mainly by its December acquisition of Insight Communications.
Revenue for the second largest cable operator in the country rose 9.9 % to $5.5 billion and operating income before depreciation and amortization (OIBDA) was up about 10.1% in the fourth quarter. For the full year, revenue increased 8.7% and OIBDA was up 8.3%.
Not including the December Insight acquisition, revenue grew 4.2% to $5.2 billion and OIBDA was up 5.6% to about $2 billion in the quarter.
In a statement, TWC chairman and CEO Glenn Britt attributed the increased to the Insight acquisition and strong showings in advanced services and on the advertising front. TWC reported ad revenue of $313 million in the quarter, up 20%
“In the year ahead, we plan to focus on operational excellence as we invest to capture long-term opportunities and drive profitable growth,” Britt continued in his statement.
TWC lost about 126,000 residential basic video customers in the quarter, better than the 132,000 most analysts expected and a slight improvement over the 129,000 lost in the fourth quarter of 2011. High-speed data additions were a bit below expectations at 75,000 and the company added about 34,000 telephony customers in the period, in line with analyst consensus.
In a research note, Credit Suisse media analyst Michael Senno said video ads were slightly below expectations but high-speed data performance missed his target of 110,000 additions in the quarter.
“We expect the focus to be on the HSD net adds and will look for more color on the call,” Senno wrote in a note to clients Thursday.
Time Warner Cable is scheduled to hold a conference call with analysts to discuss results at 8:30 a.m.