Weak demand for video services weighs on Time Warner Cable


Time Warner Cable Inc, the second-largest U.S. cable operator, lost more video subscribers in the second quarter compared with the previous quarter.

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Most cable companies have been shedding video subscribers over the past few years, losing them to satellite and telecom rivals as well as Web-based entrants such as Netflix Inc .

Time Warner Cable, which also reported a lower-than-expected quarterly profit on Thursday, said it lost 152,000 net residential video customers in the April-June quarter.

Demand for its broadband services, however, remained strong. The company added 67 thousand residential high-speed data subscribers on a net basis during the quarter.

J.P. Morgan analysts were expecting video subscriber losses of 150,000 and an addition of 75,000 high-speed data subscribers.

Comcast Corp, which is seeking regulatory approval for its $45.2 billion bid for Time Warner Cable, reported a better-than-expected profit last week, citing the highest number of customer additions for its high-speed Internet in six years.

Time Warner Cable's net income attributable to common shareholders rose to $499 million, or $1.76 per share, in the second quarter ended June 30, from $481 million, or $1.64 per share, a year earlier.

On an adjusted basis, the company earned $1.89 per share. Revenue rose 3.2 percent to $5.73 billion.

Analysts had expected a profit of $1.91 per share on revenue of $5.74 billion, according to Thomson Reuters I/B/E/S.

Time Warner Cable's shares closed at $151.42 on Wednesday on the New York Stock Exchange.