Time Warner Cable: Profits Rise, Fewer Subscribers

Glenn-Britt

Time Warner Cable registered big profit gains for its fourth quarter -- but continued fewer video subscribers.

The second-biggest cable TV operator in the country improved its net profit 22.2% to $392 million in the fourth quarter of 2010, with revenues gaining 5.9% to $4.8 billion.

But as has been the trend for many cable system operators, Time Warner lost basic video subscribers -- 141,000. Still, Time Warner continued to show strength in its newer products -- Internet and phone business, adding 94,000 data subscribers and 72,000 phone subscribers, respectively.

Triple-play business -- packages containing video, data and phone -- improved 72,000. Multiple product sales to consumers totaled 8.5 million, which represents almost 60% of all Time Warner's customer relationships.

Riding on the back of a resurgent local TV ad market, Time Warner said local ad sales increased 34% to $269 million -- much of this coming from improved political advertising dollars.

This year looks good as well. Time Warner expects double-digit percentage gains in operating income.

Concerning the prospect of "cord-cutting" -- continued defection by consumers to other newer digital technologies to get their TV programming -- many companies, including Time Warner, say there is little sign of wholesale, major transitions by consumers.

Glenn Britt, chairman/president/CEO of Time Warner Cable, said on Thursday that although online video subscription services may have better user interfaces than traditional pay-TV services, these businesses depend on cable's broadband business to work well.

In the future, he said, cable set-top boxes could be replaced by emerging technologies like Web-connected TVs and mobile devices.

Britt stated: "We made great strides financially and operationally in 2010. We achieved record free cash flow and continued to deliver on our shareholder-oriented capital allocation strategy. At the same time, we enhanced our products and services, increased the sophistication of our marketing and accelerated the growth of our commercial business."

Recommend (2) Print RSS
1 comment about "Time Warner Cable: Profits Rise, Fewer Subscribers".
  1. William Hughes from Arnold Aerospace , January 28, 2011 at 8:53 a.m.

    Thanks to MTVs SKINS, Time Warner Cable has LOST another Customer, My Mother! Last week she accidently got an eyefull of this Show while searching for another Program she wanted to watch. Goodbye TWC, Hello Angel One!