Mixed Q2 For Time Warner Cable


Time Warner Cable lost 169,000 basic video subscribers in the second quarter, falling short of analysts' estimates and overshadowing what in other aspects was a strong operating period for the nation's second-largest cable operator.
Most analysts expected TWC to lose between 120,000 and 150,000 basic video subscribers in the period. And while the MSO fell short of that mark - it was also worse that Q211 losses of 130,000 basic video customers - it beat estimates on high-speed Internet additions - 72,000 (including 13,000 business customers) vs. consensus of about 66,000. Its 45,000 voice additions slightly missed consensus estimated for a gain of 49,000 phone customers.
"Unfortunately, the weaker-than-last year basic video subscriber metric takes away at least a little of the luster of TWC's otherwise very strong report," Sanford Bernstein cable and satellite analyst Craig Moffett wrote in a research report..
The picture was brighter on the financial side, aided by a small (3.7%) increase in programming costs per subscriber. Revenue for the period increased 9.3% to $5.4 billion and adjusted operating income before depreciation and amortization (OIBDA) increased 10.3% to $2 billion, aided primarily by the recent acquisitions of Insight Communications and NewWave Communications. Excluding those acquisitions, historic Time Warner Cable revenue was up 3.1% in the period to $5.1 billion.
Time Warner Cable is scheduled to hold a conference call with analysts to discuss second quarter results at 8:30 a.m.