Time Warner Cable Misses Profit Estimates on User Losses
the second- largest U.S. cable-television operator, reported third-quarter earnings that trailed estimates after losing more video subscribers than analysts projected.
Net income (TWC) rose to $808 million, or $2.60 a share, from $356 million, or $1.08 a share, a year earlier, the New York- based company said today in a statement. Excluding one-time items, earnings per share were $1.41, missing the $1.43 average analyst estimate compiled by Bloomberg.
Time Warner Cable lost 140,000 residential video subscribers, more than the 128,000 that analysts had estimated. The cable provider also added fewer Internet and voice customers than analysts projected, a sign Time Warner Cable is struggling to market the correct bundles of services to its customers, said Paul Sweeney, an analyst at Bloomberg Industries.
“It’s a sloppy quarter across the board operationally,” Sweeney said. “Time Warner Cable has long promoted its ability to segment its subscribers. The results this quarter call into question that marketing strategy.”
Time Warner Cable fell 3.4 percent to $94.81 at 9:36 a.m. in New York. The shares had gained 54 percent this year through yesterday.
Hurricane Sandy
Damage from Hurricane Sandy, which struck the East Coast last week, isn’t expected to be significant to the company’s fourth-quarter results, the company said in a filing. Time Warner Cable will credit customers for the time they lost service because of the storm, the company said Nov 2.
Sales rose 9.2 percent to $5.36 billion, missing the average estimate of $5.39 billion. Average revenue per user among TV customers was $74.32, hurt by a decline in video-on- demand orders. That missed the $76.49 estimate of James Ratcliffe, an analyst at Barclays Plc.
Time Warner Cable repurchased $500 million worth of shares in the period, falling short of the $850 million estimated by Craig Moffett, an analyst at Sanford C. Bernstein & Co. in New York. The light repurchases were disappointing to investors who anticipated more after Time Warner Cable received $1.1 billion from Verizon Wireless for its wireless spectrum, a deal approved by regulators in August, Moffett said.
Source : Businessweek - http://www.businessweek.com
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earnings that trailed estimates after losing more video
subscribers than analysts projected
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