Time Warner Cable Posts Smallest Second-Quarter Video Sub Loss Since 2008
The company, which Charter is planning to acquire, reports its best second-quarter subscriber performance ever, but earnings miss estimates.
Time Warner Cable on Thursday reported second-quarter earnings that fell short of Wall Street estimates as well as video subscriber losses after posting its first quarterly video sub growth since 2009 in the first quarter.
But it said the second-quarter video subscriber performance was its best since 2008. In addition, residential customer relationship net additions of 66,000 marked the firm's best second quarter ever and its first positive second-quarter net additions since 2008.
The cable operator, led by chairman and CEO Rob Marcus, reported earnings of $463 million, compared with $499 million in the year-ago period, missing Wall Street consensus expectations. Revenue rose 3.5 percent to $5.93 billion. The company, which Charter Communications is planning to acquire after Comcast dropped its planned takeover amid regulatory opposition, said its results included $82 million in merger and restructuring costs, up from $61 million in the year-ago period.
Program, sales and marketing expenses increased over the year-ago period, reducing the cable company's bottom line.
TWC added 45,000 residential pay TV subscribers in the latest quarter, its best second quarter since 2008. It had added 30,000 residential subs in the first quarter.
The company ended June with 10.77 million residential video subscribers. TWC's business services unit added 2,000 video subscribers to end the second quarter with a total of 208,000. The company also added broadband and telephony subscribers.
"We delivered very strong operational results in the second quarter, providing yet another clear indication that our plan is working," Marcus said. "We achieved record second-quarter subscriber results across nearly every category, setting us up for accelerating financial performance as we look forward to the next phase of our plan. We intend to use the time between the signing and closing of the Charter deal to further strengthen our operations."