Time Warner Cable 3Q Results Lacking Anticipation As Video Subs Fall

No. 2 cable operator reported net gain of $356M, lower 1.1% versus exactly the same period this past year, on revenues of $4.9B, up 3.7%. Earnings arrived at$1.09 a share, missing the $1.14 that experts expected. Additionally they thought revenues could be slightly greater at $4.95B. The miss came as Time Warner Cable lost 128,000 residential video clients, ending the quarter with 11.9M. The organization states the drop in subs in addition to inrevenues from premium channels and transactional VOD outweighed the extra cash the organization saw from cost increases and obligations for installation charges and Digital recording device services. The amount of home broadband clients elevated 9.2% to 9.8M within the quarter — but the organization lost 8,000 residential phone customers, ending with 4.5M. All in all, Boss Glenn Britt states that the organization “posted steady financial progress” and definitely will still “focus our efforts on making the most of our growth possibilities.” Still, some experts are worried. “If broadband may be the anchor product, then video is progressively this is the anchor,” Bernstein Research analyst Craig Moffett states. “Subscribers are falling, pricing is rising, and margins are contracting.”