Time Warner Cable Q1 Profit Rises; Results Beat Estimates

(RTTNews) - Time Warner Cable Inc. (TWC) reported a profit for the first quarter ended March 31, 2016 that increased 7.9 percent from the prior year, primarily due to an increase in operating income, partially offset by an increase in income tax provision.

Both adjusted earnings per share and revenue for the quarter beat analysts' expectations.

Net income attributable to shareholders for the first-quarter grew 7.9 percent to $494 million, from the prior year's $458 million, with earnings per share improving to $1.72 per share to from $1.59 in the same quarter last year.

Adjusted net income attributable to shareholders was $518 million or $1.81 per share, compared to $474 million or $1.65 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.74 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted Operating Income before Depreciation and Amortization or Adjusted OIBDA for the first quarter of 2016 increased 8.2% driven by revenue growth, partially offset by a 6.6% year-over-year increase in operating expenses.

Operating Income for the first quarter of 2016 increased 5.6% primarily due to higher Adjusted OIBDA, partially offset by higher depreciation expense and merger-related costs. Merger-related costs for the first quarters of 2016 and 2015 were $35 million and $24 million, respectively, and restructuring costs were $5 million and $2 million, respectively.

Revenue for the first quarter of 2016 increased 7.2% to $6.19 billion from last year's $5.78 billion, as a result of revenue growth at all segments. Wall Street analysts had a consensus revenue estimate of $6.14 billion for the quarter.

TWC closed Wednesday trading at $209.19, down $1.65 or 0.78 percent.