While the telcos have been struggling to expand subscriber numbers, cable seems to be sailing at full steam; Time Warner Cable bolstered the trend by adding 15,000 customers and 656,000 revenue-generating units (RGUs).
That wasn’t TWC’s best quarter ever, but it was the company’s best second quarter ever, in terms of subscriber growth.
Time Warner Cable President and CEO Glenn Britt said: “We added 20 percent more RGUs this quarter than in last year’s second quarter, fueled by improved net additions in every RGU category, despite a challenging economic environment.
“We also increased our triple-play subscribers by a net 214,000, demonstrating that the value and simplicity of our bundles continue to attract consumers,” Britt continued. “The strength of our subscription business drove a 7 percent increase in revenues and a 9 percent rise in Adjusted OIBDA,” he said, referring to adjusted operating income before depreciation and amortization, which the company said provides a more accurate representation of operating health.
Revenue increased by $284 million, compared with the prior year’s quarter, to $4.3 billion. Sales were up across all areas – in subscriptions, video, high-speed data, voice and advertising. Net income was $277 million, up slightly from $272 million in the second quarter of 2007.
With the 656,000 new RGUs, TWC’s total RGU count now exceeds 33.6 million. Customer relationships totaled 14.7 million. As of the end of the second quarter, the company had 4.7 million double-play subs and 2.6 million triple-play subs – just more than half of all subscribers are taking a bundle.
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