By Michael Calia
Time Warner Cable Inc. reported an increase in subscribers as
the pay-TV provider continued to await the completion of its
acquisition by Comcast Corp.
The results came in below analysts' expectations.
In the most recent quarter, the company said it gained 54,000
overall residential customer relationships. High-speed data
customers grew by 168,000, while voice customers increased by
295,000. Video customers, however, declined by 38,000.
Triple Play customers grew by 273,000.
The company agreed last year to be acquired by fellow cable and
Internet provider Comcast in a $45 billion deal. However, the
transaction has fallen under intense regulatory scrutiny in
Washington, and the process is taking longer than Comcast expected,
The Wall Street Journal reported last week.
Time Warner Cable had said in October that it expected the deal
to close early in 2015. "We continue to expect the Comcast merger
to close soon; until then, we remain 100% committed to executing
our plan," Time Warner Cable Chief Executive Rob Marcus said in a
release Thursday.
For the most recent quarter, the company reported a profit of
$554 million, or $1.95 a share, up from $540 million, or $1.89 a
share, in the prior-year period. The quarter included $35 million
in costs related to the Comcast deal. Excluding certain items,
earnings rose to $2.03 a share from $1.82.
Revenue improved 3.8% to $5.79 billion.
Analysts had projected $2.08 a share in earnings and $5.81
billion in revenue, according to Thomson Reuters.
Residential revenue rose less than 1% to $4.6 billion, while
business services generated $755 million in revenue, an increase of
23%.
Write to Michael Calia at michael.calia@wsj.com
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