Time Warner Cable Reports Higher Quarterly Profits
Time Warner Cable reported higher revenues and profits in the fourth financial quarter.
In the spotlight of late, thanks to an acquisition offer from Charter Communications, TWC grew revenue 1.7 percent to nearly $5.6 billion. For the entire 2013 financial year, the cable company reported revenue at $22.1 billion, up from $21.4 billion in 2012.
Gains were made despite TWC reporting 217,000 fewer video subscribers and a 7.7 percent increase in the average monthly video programming cost per subscriber. High-speed data fueled the growth.
On the profits front, TWC posted adjusted net income of $521 million in the fourth quarter of 2013, up 8.6 percent from $479 million the previous year. For the full year, the cable company had profits of $1.95 billion, which was down $200 million or 9.3 percent from 2012.
The earnings came in ahead of Wall Street expectations. The company also gave investors something to cheer about by raising its regular quarterly dividend by 15 percent, to $0.75 per share.
"I'm really excited about the progress we made in Q4 and the significantly better trends we're driving as we enter 2014," said Time Warner Cable CEO Rob Marcus. "We are geared up to manage this company for the long haul."
Charter has proposed a $61 billion acquisition of TWC, and after the offer was rebuffed by TWC management as inadequate, Charter officials have made strong comments about its competitor's health and direction.
On Thursday, TWC responded by presenting an 11-page PowerPoint presentation entitled "TWC and Charter Comparison," highlighting its own strengths. Among them: higher video and high-speed data penetration, more revenue and free cash flow, more Cable Wi-Fi hotspots plus its advertising business, which includes sales on behalf of Charter. TWC says its margins are bigger, that it has broader business services and has been recognized for superior technology. It proudly points out that it has an Emmy Award for engineering while Charter has none.