Time Warner Cable Q2 Profit Rises, Adj. Earnings Miss Estimates

(RTTNews) - Time Warner Cable, Inc. (TWC) Thursday reported higher second-quarter profit, on growth in revenues driven by increases in high-speed data and voice subscribers, despite decline in video subscribers. Adjusted earnings as well as revenues missed analysts' expectations.

For the quarter, the provider of video, high-speed data and voice services, said its net income attributable to shareholders increased to $499 million or $1.76 per share from $481 million or $1.64 per share in the previous year.

Adjusted earnings per share were $1.89 for the recent quarter, while the firm posted $1.69 per share last year.

On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $1.91 for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 3.2 percent to $5.73 billion from $5.55 billion in the prior year. Analysts expected revenue of $5.74 billion for the quarter.

The company said its revenue growth was driven mainly by 22.3 percent increase in business services revenue and 12.8 percent rise in residential high-speed data revenue.

Business Services revenue growth was mainly driven by increases in high-speed data and voice subscribers, organic growth in cell tower backhaul revenue and $29 million of revenue from DukeNet, which was acquired on December 31, 2013.

Average monthly revenue per residential customer relationship or ARPU, improved 1.7 percent to $106.98. Residential high-speed data ARPU was up 9.7 percent to $46.92.

Residential video revenue decreased mainly due to a year-over-year decline in video subscribers, partially offset by an increase in average revenue per subscriber as a result of price increases.

Residential video customers declined by 152,000 in the period, while residential high-speed data customers grew by 67,000 in the second quarter of 2014. Time Warner Cable lost 34,000 residential customer relationships during the quarter.

Chairman and CEO Rob Marcus said, "We delivered the best second-quarter subscriber volumes in years, accelerated ARPU growth and made terrific progress on our strategic and operating initiatives."

TWC is currently trading at $148.93, down 1.64 percent.