Time Warner Cable – which could be consumed by Charter Communications by mid-May if its takeover bid is approved – delivered better-than-expected Q1 results with adjusted earnings of $518 million, or $1.81 per share, compared to $1.65 a year ago, on revenue that rose 7% to $6.19 billion. Analysts expected adjusted earnings of $1.74 a share on revenue of $6.14 billion.
"Our first-quarter results are the clearest indication yet that our efforts over the last 27 months are paying off,” said Rob Marcus, TWC chairman and CEO. “We have made our network more reliable, our products more compelling and our customer service far better.”
Marcus told analysts that, “As this is likely our last earnings call…It's been a really good run."
Marcus said much of its residential video revenue growth – up 5.8% in the quarter to $4.39 billion – was due to increased equipment rental fees and premium network revenue and also by a nearly 12% increase in high-speed-data revenue.
Both will be impacted after the merger as Charter structures is CPE differently and has agreed to not institute data caps for seven years as part of its deal to gain approval of the merger from federal regulators.
The operator also continued to deliver upbeat subscriber metrics, reporting it added 21,000 residential pay-TV subscribers, to bring its total to 10.84 million. The company also added 314,000 broadband subscribers.
Over the past several months, cable operators have seen a pause in the big subscriber losses they experiences over the past three years, taking back subscribers they had lost to telco and satellite operators.
Overall, pay-TV subscriber growth has stalled, with most forecasts showing a gradual decline in pay-TV subscribers as more viewers get their video entertainment over the top.
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