Time Warner Cable Records Mixed Results: Revs Up, Subscribers Down

In the midst of its very public battle with CBS, Time Warner Cable offered up some mixed second-quarter earnings

Net profits rose 6.4% to $481 million. But revenue only moved up 2.7% to $5.55 billion, which was just under analysts' estimates.

Time Warner lost 191,000 video subscribers -- about 20,000 more than projected -- to total 11.7 million video customers. The cable company also lost 56,000 residential phone customers, more than twice as many as anticipated. Only Internet customers increased -- 21,000. Still analysts were projecting about twice that total. Total residential customer relationships declined 93,000 to 14.6 million.

Time Warner is in a TV station carriage battle with CBS, which is looking for a substantial price increase when it comes to cable operators that carry its stations. Insider estimates are that CBS is seeking a $2.00 subscriber-per-month fee, up from 50 cents. The new deadline for the negotiations is Friday afternoon.

As for rumors that Time Warner Cable will merge with other cable operators, such as Charter Communications, to form a more powerful entity -- an idea pushed by Liberty Media Chief Executive Officer John Malone -- Time Warner Chief Executive Officer Glenn Britt said in an earnings call that talk of such a move is an endorsement of the value of Time Warner Cable.



1 comment about "Time Warner Cable Records Mixed Results: Revs Up, Subscribers Down".
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  1. Andy Hunn from Digital Distribution, August 2, 2013 at 10:34 a.m.

    The notion of the cord cutter has a small drip from the dam may just be turning into a minor stream. But it is that fear that has cable operators shaping the conversation to investors to say that they are focusing on the better customer with the higher average revenue returned. Maybe for now the cheaper customer is leaving now, enabling the average revenue to rise for the remaining customer base; still, that customer loss will ultimately hurt the total revenue model. http://lnkd.in/JYk4HM

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