Time Warner Cable (TWC) Misses Q3 EPS by 5c

Time Warner Cable (NYSE: TWC) reported Q3 EPS of $1.86, $0.05 worse than the analyst estimate of $1.91. Revenue for the quarter came in at $5.71 million versus the consensus estimate of $5.75 million.

Time Warner Cable Chairman and CEO Rob Marcus said: “We’re executing well against our plan, with solid financial performance and strong subscriber momentum. We continue to expect the Comcast merger to close early in 2015.”

HIGHLIGHTS

Financial Highlights

• Third-quarter 2014 revenue grew 3.6% year over year with Business Services revenue up 21.9% and residential high-speed data revenue up 10.9%.
• Adjusted OIBDA was $2.1 billion — up 2.4% year over year and flat with Q2 — the best third-quarter sequential performance in eight years. Operating Income of $1.2 billion decreased slightly year over year due to higher depreciation and merger-related costs.
• Business Services operating leverage increased significantly as Adjusted OIBDA growth of 28.5% outpaced revenue growth by 660 basis points.
• Adjusted Diluted EPS increased 10.1% to $1.86. Diluted EPS decreased 4.3% to $1.76.
• Third-quarter 2014 average monthly revenue per residential customer relationship (ARPU) grew 1.4% to $106.58.

Operational Highlights

• Total customer relationship performance was the best for any third quarter in six years.
• Total high-speed data net additions of 108,000 marked the best third-quarter performance in five years.
• The Company made significant progress in the roll out of “TWC Maxx.” The “all digital” conversion is now complete in New York City and Los Angeles, and Internet speeds of up to 300 Mbps are now available to roughly seven million homes in New York City, Los Angeles and Austin, Texas.
• TWC continued its aggressive investments in CPE to support TWC Maxx and improve the customer experience. Year to date, the Company connected more than five million new set-top boxes, digital-to-analog converters and advanced modems to its network.
• Investments in network reliability and customer care contributed to a more than 12% year-over-year reduction in trouble calls per customer relationship — half a million fewer truck rolls year to date.
• On-time performance within TWC’s company-wide one-hour service windows reached 96% in the third quarter.
• Business Services added more than 16,000 commercial buildings to its network in the third quarter, expanding its serviceable market opportunity by over $250 million per year.

For earnings history and earnings-related data on Time Warner Cable (TWC) click here.

You May Also Be Interested In

• Nanometrics (NANO) Issues Business Update, Reports FY23 Results
• Empire State Realty Trust (ESRT) Reports Q1 EPS of $0.03
• First Mid Bancshares, Inc. (FMBH) Tops Q1 EPS by 8c