TWC Continues Operations Momentum

Basic Video Losses Best Since 2006
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Time Warner Cable continued to improve its operations metrics, reporting its seventh straight quarter of improved basic video subscriber losses, shedding just 7,000 in the third quarter, its best since 2006.

“I’m very excited about the operating momentum reflected in our third-quarter results. Subscriber growth was the strongest in years; revenue growth accelerated; and we continued to make significant investments in our network, equipment, products and customer service,” TWC chairman and CEO Rob Marcus said in a statement. “Our ongoing transformation is a testament to the strength of our operating plan and the commitment of our entire team – all 55,000 employees – who work tirelessly every day to make Time Warner Cable an even better company.”

In addition to the improved video subscriber metrics – it lost 184,000 customers in Q3 2014 – TWC added 232,000 high-speed data customers (best Q3 since 2006) and 237,000 residential telephone customers (best Q3 since 2007). Overall residential customer relationships were up by 147,000 in the period, its best Q3 ever and the first time it reported positive net additions since 2008.

The improved metrics helped raise revenue by 3.6 % in the period to $5.9 billion. However, increased operating expenses helped push adjusted operating income before depreciation and amortization (AOIBDA) down by 3.6% to $1.98 billion in the period.

Operating expenses increased 7.7% in the period, driven mainly by increased programming and content costs, up 10.2% to $1.5 billion in the period. Capital expenditures were $1.1 billion in the period, even with the prior year.

Investments in network reliability and customer care continued to contribute to meaningful year-over-year residential operational improvements in the third quarter.

* 11% decrease in care calls per customer relationship.

* 16% reduction in repair-related truck rolls per customer relationship.

* 98% on-time percentage for customer appointments within the Company’s industry-leading one-hour appointment arrival window.

* 11% improvement in first-visit problem resolution