Buoyed by additions to its broadband and digital phone revenue, Time Warner Cable said today that its third-quarter profits increased by 21 percent.
The nation’s second-largest cable operator said its net income increased to $301 million, or 31 cents per share, compared with $248 million, or 25 cents per share, from a year ago. Revenue increased 8 percent, from $4 billion last year to $4.34 billion. Some analysts had forecast profit of 28 cents per share on revenue of $4.36 billion.
Time Warner Cable said today’s results included $53 million in costs associated with its planned split-off from Time Warner Inc.
“Time Warner Cable delivered another strong quarter of operational and financial growth,” said Time Warner Cable CEO and President Glenn Britt. “Our communications and entertainment services continue to be a vital part of consumers’ lives, as evidenced this quarter by growth in bundled services and customer relationships. In particular, we generated very strong high-speed data net additions that far outpaced the telcos’ broadband additions.”
High-speed data revenues increased 12 percent ($114 million) to $1.1 billion, as a result of continued high-speed data subscriber growth. Time Warner cable added 214,000 residential high-speed Internet accounts in the quarter, which was more than AT&T and Verizon.
Voice revenues were up 37 percent ($113 million) to $421 million, reflecting growth in Time Warner Cable’s digital phone subscribers. Time Warner Cable’s residential phone subscriptions grew by 200,000, or 5.8 percent.
Time Warner Cable lost 31,000 basic video subscribers in the third quarter for a total of 13.3 million, but the company added 168,000 triple customers during the quarter.
Advertising revenues grew 1 percent ($3 million) to $224 million, primarily due to an increase in political advertising revenues, partially offset by a decline in advertising revenues from national, regional and local businesses.
Time Warner Cable forecast 2008 revenue growth of about 8 percent, compared with its previous forecast of about 9 percent.
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