Damn the recession, it’s full speed ahead for Time Warner Cable after it reported this morning that its second quarter profit increased by 14 percent.
For the three months that ended June 30, Time Warner Cable’s quarterly profit increased to $316 million, or 89 cents per share, which was up from the $277 million, or 50 cents per share, it posted a year ago.
Excluding one-time items, Time Warner Cable’s net income came out to 91 cents per share, which beat the 78 cents per share that analysts polled by Thomson Reuters had projected.
“I’m pleased with our second-quarter financial results and, in particular, with our very strong free cash flow,” said Time Warner Cable CEO Glenn Britt. “Despite the tough economic environment, we continue to grow, unlike many other businesses. We generated over $1 billion of free cash flow in the first half of the year, which has enabled us to reduce the debt we incurred in our recent separation from Time Warner Inc., strengthening our balance sheet and driving returns for our shareholders.”
Time Warner Cable was spun off from Time Warner in March, and today’s earnings report was its first after the separation.
Time Warner Cable’s second-quarter revenue rose 4 percent to $4.47 billion, which topped the $4.3 billion from the same quarter a year ago.
Despite losing more basic tier subscribers, the company’s video revenue increased by 3 percent to $2.7 billion due to growth in digital subscribers and video-related price increases.
On the data side, revenue rose by 9 percent to $1.1 billion due to new subscribers, while voice revenues increased 19 percent to $471 million with the addition of new customers, but that was partially offset by lower average revenue per subscriber.
Time Warner Cable, the nation’s second-largest MSO, reported that its advertising revenue dropped 25 percent to $174 million.
As of June 30, Time Warner had 14.7 million customers. The company’s revenue-generating units (RGUs) approached 35 million with the addition of 204,000 in the second quarter. Time Warner Cable’s triple-play customers exceeded 3.3 million, which is 23 percent of its overall customer base, due to 90,000 net additions in the second quarter. All told, nearly 56 percent of Time Warner’s customers are signed up for bundled services.