Time Warner Cable Inc. said its first-quarter profit jumped 19%
as the pay-TV and Internet provider logged growth in high-speed
data and business services revenue, while adding to its overall
residential subscriptions.
Earnings topped analysts' expectations.
After spurning several offers from smaller peer Charter
Communications Inc., Time Warner Cable in February agreed to be
bought by Comcast Corp. for $45 billion in stock, a deal that
triggered regulatory debate and fierce criticism from other media
companies. Video streaming service Netflix Inc. said this week it
opposes the merger because the combined corporation would dominate
the U.S. market for broadband Internet.
Time Warner Cable and Comcast--who have repeatedly said they
don't compete directly in cable and broadband markets--have
defended the deal to lawmakers and critics alike, saying the merger
would better enable them to compete with the likes of Verizon
Communications Inc., Google Inc. and Amazon.com Inc.
Time Warner Cable, like its pay-TV rivals, has worked to rely
more on broadband Internet as it fights a two-front battle as
content providers and TV channel owners have sought higher
programming fees while consumers increasingly cut back on pay-TV
service in favor of streaming services.
Despite losing 34,000 residential video subscribers during the
first quarter--the smallest such drop in five years--the company
added 148,000 overall residential customer relationships, its
highest such gain in more than seven years, it said. It gained
269,000 residential high-speed data subscribers, its most since the
first quarter of 2008, and residential voice subscribers grew by
107,000.
Revenue from residential customers slipped nearly 1% to $4.57
billion, as declines in video and voice revenue offset gains in
high-speed data revenue. Business services revenue rose 24% to $668
million.
Overall, Time Warner Cable posted a profit of $479 million, or
$1.70 a share, up from $401 million, or $1.34 a share, a year
earlier. Excluding merger-related restructuring costs, per-share
earnings rose to $1.78 from $1.41.
Revenue rose 2% to $5.58 billion.
Analysts surveyed by Thomson Reuters had projected a $1.67 a
share in earnings and $5.64 billion in earnings.
Write to Michael Calia at michael.calia@wsj.com
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