Tags: time warner | cable | earnings | comcast deal

Time Warner Cable Earnings Decline After Comcast Deal Ends

Thursday, 30 Apr 2015 08:10 AM

Time Warner Cable Inc., whose merger with Comcast Corp. was called off last week, posted first-quarter profit that missed analysts’ estimates because of higher TV programming costs.

First-quarter earnings dropped to $1.65 a share, falling short of the $1.88 average of estimates compiled by Bloomberg. Sales gained 3.5 percent to $5.78 billion, the New York-based cable company said Thursday. Analysts projected $5.83 billion.

Investors are focused on what’s next for Time Warner Cable after Comcast dropped its $45.2 billion takeover deal — which would have combined the two largest cable companies in the U.S. — in the face of regulatory hurdles. Advisers for Charter Communications Inc., the No. 4 in the industry, have already reached out to Time Warner Cable to begin talks on an acquisition, people with knowledge of the matter have said.

As the number of Americans paying for TV declines, Time Warner Cable has focused on offering cheaper bundles of cable, Internet and phone service to keep subscribers and lure new ones. It also invested in improving its high-speed Internet network as younger viewers increasingly watch shows on the Web.

The company also faces rising costs for airing football, basketball and other games. Customers this year had a $2.75 monthly charge added to their bills for sports programming.

Content Costs

Programming and content expenses climbed 8.4 percent to $1.42 billion in the quarter, as TV programmers demanded higher fees for the right to air their sports and broadcast channels.

Time Warner Cable gained 30,000 residential cable customers, while adding 320,000 residential voice customers and 315,000 residential high-speed Internet clients.

The company was expected to add 39,000 video subscribers and 188,500 high-speed Internet subscribers, according to analysts’ estimates compiled by Bloomberg.

Time Warner Cable’s net income fell to $458 million, or $1.59 a share, from $479 million, or $1.70, a year earlier.

The number of U.S. subscribers to cable, satellite or fiber services fell for a second straight year in 2014, by about 176,000, according to research firm SNL Kagan. A year earlier, the drop was 251,000.


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Time Warner Cable Inc., whose merger with Comcast Corp. was called off last week, posted first-quarter profit that missed analysts' estimates because of higher TV programming costs. First-quarter earnings dropped to $1.65 a share, falling short of the $1.88 average of...
time warner, cable, earnings, comcast deal
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2015-10-30
Thursday, 30 Apr 2015 08:10 AM
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