Time Warner Cable posts disappointing 1Q results

Earnings HQ: FBN's Adam Shapiro breaks down Time Warner Cable's first-quarter earnings report.

TWC Results Disappoint, Subscribers Increase

Features Dow Jones Newswires

Time Warner Cable Inc. reported disappointing profit and revenue for the first quarter, though the company reported strong subscriber growth.

Continue Reading Below

The report comes just a week after its $45 billion deal to be bought by Comcast Corp. fell apart amid increasing pressure from regulators. The deal had promised to reshape the media landscape--forcing TV channel-owners and other pay-TV operators to contemplate their own mergers.

Time Warner Cable Chief Executive Rob Marcus said in a news release Thursday that the first quarter was among the company's best ever in terms of subscribers.

"We are a far stronger company than we were just five short quarters ago, " he said.

Time Warner Cable said it added a net 205,000 residential customer relationships, its best quarter ever. High-speed data customers grew by a net 315,000, while voice customers increased by 320,000.

Video customers grew by 30,000--its first positive quarterly net additions since 2009. Triple Play customers grew by a net 298,000.

Continue Reading Below

Overall for the quarter ended March 31, the company reported a profit of $458 million, or $1.59 a share, down from $479 million, or $1.70 a share, in the prior-year period.

Expenses were higher in the quarter as programming and content costs grew 8.4% and customer care costs grew 10%.

The quarter also included $26 million in merger and restructuring costs.

Excluding certain items, earnings were $1.65 a share.

Revenue grew 3.5% to $5.78 billion.

Analysts had projected $1.87 a share in earnings and $5.83 billion in revenue, according to Thomson Reuters.

Business services revenue grew 16.9%, while residential services revenue grew 2.1%.

Shares, inactive premarket, are up 3.8% this year.

Corrections & Amplifications

Some earlier versions of this story had an incorrect figure for Time Warner Cable's merger and restructuring costs, which were $26 million in the first quarter.