Despite an eroding video subscriber base, Time Warner Cable Inc. (NYSE: TWC)'s profits jumped 23 percent in the second quarter, aided by solid gains in its high-speed Internet and commercial services businesses.
The MSO notched up net income of US$420 million, or $1.24 per share on flat revenues of $4.94 billion. That's up from a profit of $342 million or 95 cents per share it reported a year ago. Analysts polled by Thomson Reuters expected net income of $1.17 per share on revenues of $4.9 billion.
TW Cable lost 130,000 video subs in the quarter, offset in part by 54,000 new high-speed Internet subs and 32,000 voice subs. Revenues at its business services unit rose 34.7 percent, to $361 million.
TW Cable shares closed 1.1 percent to $77.10 each on Wednesday.
True. TWC stopped breaking out digital subs that way a few quarters ago. But the did mention on the earnings call that they did in fact gain digital video subs, they just didn't reveal how many. But I'd agree that they are growing tired of it and realize they had better stop the bleeding, even if they claim that a large share of those video losses were analog single play customers. JB
I notice in its press release that TWC did not make note of any gain in digital video customers. This is a subtle but significant shift from previous years when the story was "We lost xxx basic subs but gained xxx digital subs." This is a sign that the MSOs are tired of losing subscribers, regardless of any positive metrics on the digital side.
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