Revenue, Video Losses Up At Time Warner CableCable Firm Misses Analyst Targets In Third Quarter 11/05/2012 3:44 AM Eastern
Time Warner Cable grew revenue and cash flow by more than 9% in the third quarter, fueled in part by rate increases, but basic video subscriber losses at 140,000 for the period, missed analyst expectations.
TWC reported revenue of $5.4 billion in the quarter 9.2% above the same period last year, fueled by rate increases and a gain of 85,000 high-speed data customers in the period. Operating income before depreciation and amortization totaled $1.9 billion for the period, 9.2% above the prior year.
Analysts were a bit disappointed in TWC's subscriber performance -- it lost 140,000 basic video customers in the period, missing analysts' consensus estimates of 134,000 losses. High-speed data additions of 85,000 in the period also missed consensus of a gain of 96,000.
Credit Suisse media analyst Stefan Anninger said TWC missed his expectations, adding that the stock may experience some pressure in trading Monday.
In a statement, Time Warner Cable chairman and CEO Glenn Britt said he was pleased with the company's performance, adding that most trends were similar to the preceding quarter.
"During the quarter, we remained focused on investing in growing out business, while at the same time ramping capital returns to our shareholders," Britt said.