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Thursday, November 05, 2009

Time Warner Cable Earnings Drop, But Top Expectations

By Matt Egan

FOXBusiness

Time Warner Cable’s (TWC) net income fell 11% during the third quarter but the results narrowly exceeded Wall Street’s expectations as the cable operator offset slumping video subscriptions with an infusion of voice and Internet customers.

Last quarter the No. 2 U.S. cable operator earned $268 million, or 76 cents a share, compared to $301 million, or 92 cents a share, in the same period a year ago. Analyst polled by Thomson Reuters had forecasted a profit of 75 cents a share.

Time Warner Cable, which was spun off earlier this year from media giant and CNN parent Time Warner (TWX), said its revenue rose 4% to $4.5 billion, topping the Street’s view of $4.47 billion.

“Our business model is resilient even in a tough economy and in the face of intense competition. We’ve built great assets in our plant and customer relationships that provide a strong foundation for continuing growth,” CEO Glenn Britt said in a statement. “We intend to continue operating the business aggressively yet prudently to generate attractive returns for our shareholders.”

While the rival of Cablevision (CVC) saw 84,000 fewer video subscribers last quarter, it added 117,000 residential high-speed data subscribers and 62,000 residential digital phone subscribers.

Time Warner Cable’s shares were in active in the premarkets but have slumped nearly 40% year-to-date, significantly underperforming the broader markets.

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