Video services

TW Cable Sheds Video and Voice Subs

The tough economy left its mark on Time Warner Cable Inc. (NYSE: TWC)'s third quarter as the MSO lost 128,000 video subs and 8,000 residential voice customers versus the year-ago quarter. (See TW Cable Posts Q3 .)

The MSO fared better with high-speed Internet, with the addition of 89,000 customers, extending its total to 9.72 million. It ended the quarter with 12.06 million video subs and 4.48 million voice customers.

TWC made a third-quarter profit of US$356 million or $1.08 a share, on revenues of $4.91 billion, down 4 percent from a year ago. The MSO missed on both sides as analysts were expecting earnings of $1.13 per share and revenues of $4.95 billion.

Business services were again a bright spot, as the MSO added 2,000 video subs in the category, as well as 16,000 high-speed data and 13,000 voice customers. Business-services revenues in the quarter jumped 34.8 percent to $387 million, thanks in part to cell-tower backhaul revenues of $34 million from the recently acquired cloud services specialist NaviSite (Nasdaq: NAVI). (See TW Cable Makes Cloud Progress With NaviSite.)

— Jeff Baumgartner, Site Editor, Light Reading Cable

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