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Video services

Broadband & Biz Services Power TWC's Q1

Gains in broadband subscribers and business service revenues led Time Warner Cable Inc. (NYSE: TWC)'s first-quarter results even as the MSO shed another batch of video customers. (See TW Cable Makes $382M Profit in Q1.)

The MSO lost 94,000 video customers in the period, much worse than the loss of 42,000 video subscribers in the year-ago period. It ended the quarter with 12.46 million video customers.

But those losses were offset by solid gains in other service categories, as the MSO signed up 214,000 new high-speed data and 112,000 new voice customers, taking the totals for those services to 10.71 million and 4.94 million respectively.

TW Cable posted a profit of US$382 million ($1.20 per share) on revenues of $5.1 billion, up 6.4 percent from the year-ago quarter. Analysts polled by Thomson Reuters were expecting a profit of $1.21 per share and revenues of $5.12 billion.

Residential service revenues rose 4.1 percent to $4.4 billion in the quarter, while business service revenues, an increasingly strong market for TW Cable and other U.S. MSOs, jumped 37.5 percent to $429 million.

— Jeff Baumgartner, Site Editor, Light Reading Cable



Jeff Baumgartner 12/5/2012 | 5:35:01 PM
re: Broadband & Biz Services Power TWC's Q1

Sort of a mixed bag for TWC with respect to the sub #s that analysts were expecting. According to ISI Group's Vijay Jayant, TWC beat the consensus of 195K for HSD adds, and crushed the expected 51K voice subs. But video sub losses were worse than the expected, as consensus saw TWC losing 58K in Q1. JB


 

craigleddy 12/5/2012 | 5:34:59 PM
re: Broadband & Biz Services Power TWC's Q1

The question is, what's responsible for the MSOs' continuing losses in video subscribers? Is it the economy?, as most MSO execs have blamed. Is it the telcos and satellite, including DirecTV's Get Rid of Cable campaign (funny but how effective?)? Is it the increase in Internet video options? All or none of the above? 


Inquiring minds want to know.  

AESerm 12/5/2012 | 5:34:59 PM
re: Broadband & Biz Services Power TWC's Q1

Going out on a limb, I'd say all of the above. Video subs leave, but profits continue to grow. So something is right with that picture.  

shygye75 12/5/2012 | 5:34:57 PM
re: Broadband & Biz Services Power TWC's Q1

Craig -- I know these numbers usually aren't current, but I haven't seen anything in the aggregated data to suggest that the number of U.S. households subscribing to video services is declining. That would strongly point to leakage to satellite and telco competitors. Agree?

craigleddy 12/5/2012 | 5:34:54 PM
re: Broadband & Biz Services Power TWC's Q1

Yes, cable keeps losing video subs and the telcos and satellite keep gaining. In terms of total basic cable TV subscriber numbers, major MSOs are losing the equivalent of a good-sized cable system each quarter.


 Oddly, this doesn't seem to concern the MSOs or even Wall Street very much. They're focusing on the bigger battleground -- broadband -- where cable keeps growing (even with phone!) and where the margins are far better than cable TV, so the MSOs keep showing profits. It's a new ballgame.


 


 

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