Time Warner Cable Reports Video Revs Dip, But Broadband Grows

Time Warner Cable continues to lose steam with its video business, but its broadband consumer business is paying off.

The second-largest U.S. cable company -- which is yet to complete a takeover by Comcast Corp., the biggest U.S. cable company -- reported that third-quarter revenue was 3.6% higher to $5.7 billion. Net income was down 33% to $499 million.

Revenue from its video consumer business was down 4% to $2.5 billion, with subscribers down a substantial 184,000 during the period to 10.83 million.

Analysts have expressed concern over mounting programming costs for all pay TV providers. For Time Warner Cable, this was up 9.6% during the period to $1.3 billion, with the average monthly cost per residential video subscriber 11.1% higher to $38.96.

But residential broadband business keeps growing -- up 92,000 subscribers to 11.51 million -- pulling in 10.9% higher revenue to $1.6 billion.

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Time Warner’s local cable advertising business also had major growth -- up 9.1% to $276 million, primarily due to political advertising revenue and higher non-political revenue. Political advertising revenue was $26 million compared to $12 million for the third quarter of 2013.

Revenue from phone/voice residential customers was down 4.4% to $476 million, with the number of customers slightly higher at 4.99 million.

Time Warner Cable’s midday stock price was down 1% to $142.39.

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