Time Warner Cable Up 9%, Credits Broadband, Ad Rev
Time Warner Cable posted seemingly strong third-quarter financial results from higher broadband revenue and advertising revenue, and some assets sales. But the stock market didn't see it that
The company's stock was down 6% to $92.04 in mid-day trading. During its third-quarter earnings call, company officials said there was some damage to the New York-based cable operator's facilities from Hurricane Sandy, but claimed it wasn't significant. However, on Monday, many homes in Lower Manhattan were still without Time Warner service.
Time Warner witnessed 14% revenue growth for its high-speed data business, to $1.3 billion on the backs of adding 85,000 new customers, now totaling 10.9 million. Political advertising was a major factor in lifting its total advertising business 22% to $264 million.
Revenues from its business services division also climbed sharply: 27% to $493 million.
The company's mainstay video business grew 3.7% to $2.7 billion, although it continued to lose video customers, down 140,000 to 12.2 million.
Voice/phone business climbed 7.3% to $530 million. This unit's customer base stayed the same: 4.9 million.
Overall revenue grew 9% to $5.36 billion, with net income more than doubled to $809 million, due largely to its SpectrumCo sale. It also sold off assets of its Clearwire investment.