Time Warner Cable Reports Lower TV, Video Revs

While it continues to wait to close its merger with Charter Communications, Time Warner Cable showed minimal losses to its video business -- but lower cable revenue -- in its third-quarter financial reporting period.

The company lost a scant 7,000 net video customers during the period -- its best result in nine years. It now has 10.767 million video customers.

But at the same time, video revenue slipped 1.8% to $2.497 billion.

Time Warner Cable says there was “a decrease in average revenue per subscriber, primarily the result of lower programming tier and transactional video-on-demand revenue, partially offset by growth in video equipment rental and premium network revenue.”

But high-speed broadband business continues to grow -- gaining 232,000 customers, to 12.4 million in total. It improved revenue 9.4% to $1.77 billion. Voice was also up a significant 237,000 customers to a total of 6.1 million. Voice revenue was $476 million -- a 1.5% gain.

Time Warner Cable’s local advertising sales sank 9.1% to $251 million during the period -- due to lower political advertising versus the same time a year ago.

One of its closely watched expenses -- programming and content costs -- grew 10.2% to $1.4 billion. Marketing costs rose 8.8% to $408 million.

Time Warner Cable's overall revenue grew 3.6% to $5.9 billion, with net income down 12.4% to $437 million due, in part, to a decrease in an income tax provision.

Its stock was up nearly 2% in midday trading to $188.59.

Next story loading loading..