Time Warner Cable Posts Solid Q4 Results


Time Warner Cable easily beat analyst estimates on practically every front during the fourth quarter, with net income soaring 44%, cash flow up nearly 9% and basic subscriber losses in line at 129,000 for the period.
In a statement, TWC chairman and CEO Glenn Britt said the fourth quarter performance was a testament to the continued strength of the company's core business "amidst rapid change in technology and the consumer marketplace. We have a full slate of strategic and operational initiatives planned for the year ahead, all designed to generate strong cash flow, enable future growth and provide attractive returns to our shareholders."
For the quarter, revenue increased 4% to $5 billion, fueled by a 37% increase in business services revenue to $409 million, and a 10% bump in advertising sales to $242 million. Analysts had predicted 3.5% revenue growth folr the period.
For the full year, revenue was up 4.3% gto $19.7 billion, spurred by a 32% rise in business services revenue (to$1.5 billion), while adveritsing revenue remained flat at $880 million.
Operating Income Before Depreciation and Amortization rose 8.7% to $1.9 billion. For the full year, OPIBDA increased 5.1% to $7.2 billion.
Net income for the quarter rose 44% to $564 million. For the year, profits were up 27.3% to $1.3 billion.
As a result, TWC said it has authorized a $4 billion share repurchase program.
Ina research note, Credit Suisse media analyst Stefan Anninger praised TWC for a strong quarter that outpaced most consensus estimates, adding that the share repurchase, above the 2011 authorization of $2.6 billion and double the $2 billion most expected for 2012, should "excite investors."
TWC lost about 129,000 basic video customers in the period, below the 141,000 customers the company lost in the same period in 2010 and in line with analysts' estimates of losses in the range of about 130,000 customers. The MSO added about 117,000 high speed data customers and 37,000 telephony subscribers, also in line with analyst estimates.