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Earnings reports

Time Warner Video Subs Slide

Despite overall revenue growth, Time Warner Cable Inc. continues to suffer losses in its residential video business. The company dropped 119,000 residential video subscribers in the first three months of 2013, and US$40 million in video revenue compared to the first quarter of 2012. Unfortunately for Time Warner, this week's earnings report contrasts dramatically with quarterly video gains claimed by AT&T Inc. and Verizon Communications Inc. Those telecom competitors added a combined 398,000 video subscribers in the first quarter of 2013. (See AT&T Piles the Hurt on Cable, and FiOS Turns the Screw on Cable.) Time Warner has plenty of good news to celebrate, however. The company's declining video fortunes were offset by the addition of 131,000 new broadband subscribers, and a higher average revenue per user among Internet service customers. Time Warner also enjoyed a significant rate of growth for its commercial services business, increasing revenues more than 25 percent year-on-year to $537 million in the quarter. Other news of note in the earnings report: Time Warner increased advertising revenue to $228 million, and recorded $99 million in "other" revenue, primarily from distribution fees earned through the company's regional sports networks in Los Angeles. Average monthly video programming expenses were up, with the average fee per subscriber growing to $33.16. — Mari Silbey, Special to Light Reading Cable
mendyk 4/26/2013 | 3:12:16 PM
re: Time Warner Video Subs Slide Right, and now it appears TWC is no longer interested in bringing in new voice service subscribers. What is TWC risking by backing away from the service bundles that seem so attractive to customers?
craigleddy 4/26/2013 | 1:37:53 PM
re: Time Warner Video Subs Slide From a margin myopic standpoint, the margins in high-speed data (HSD) are miles better than video because MSOs don't have to pay all those programming fees. I think the TWC execs said they have 2 million-plus HSD-only customers, and they seemed fine with that.
mendyk 4/25/2013 | 11:16:46 PM
re: Time Warner Video Subs Slide TWC also said it would stop aggressively pushing triple-play packages, which implies it will focus on data and video. Is this an issue of simply not getting the margins to work out? Margin myopia seems to be a growing trend.
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