More revenue from new digital residential
customers helped Time Warner Cable witness big net income gains for the fourth quarter 2011.
Net income for the company was at $564 million for the quarter, with revenue up 4% to $5 billion. Total revenue from the company's residential businesses was up 2.6% to $4.3 billion. Total revenue for 2011 rose 4.3% to $19.7 billion.
Growth came from residential high-speed data revenues -- the number of subscribers and increases in average revenues per subscriber. Residential voice also climbed, but revenues had a slight decrease per subscriber.
The unexpected rise in its results push up the company's stock price over 7% in mid-day Thursday trading.
Overall digital phone, Internet and video customers continued to climb -- as its older analog basic cable customers went in the other direction.
The company also added 117,000 high-speed data residential customers and 37,000 phone subscribers, in line with analyst estimates. Time Warner's biggest number of customers added 5,000 -- 0.2% rise -- now totaling 2,628,000. The company lost about 129,000 basic video customers in the period, below the 141,000 analysts were expecting.
Time Warner says there was a decline in overall video subscribers and lower revenues from premium channels, as well as lower video-on-demand revenues.
Business services grew 37% to $409 million. At same time, local cable advertising sales slipped 10% to $242 million. For the year, Time Warner posted $880 million in advertising sales, at virtually the same level as in 2010.