Time Warner Cable Profit Rises as Customer Base Declines

By

Despite losing 155,000 video subscribers, Time Warner Cable reported earning $360 million, or $1 per share, up from $268 million, or 76 cents per share, a year earlier. The nation’s second-largest cable company watched as revenues rose 2 percent from the same period in 2009 to $6.4 billion. Operating income grew 5 percent to $1.4 billion. And advertising revenues grew 9 percent, driven by increases of 10 percent at Turner and 5 percent at Time, Inc.

Chairman and CEO Jeff Bewkes said in a statement: “Time Warner achieved strong performance yet again in the quarter and, with adjusted EPS up more than 35 percent through the first three quarters, we remain on track for a very strong year. Our strategy of focusing on high-quality branded content continues to pay off. Our networks businesses delivered robust growth in advertising and subscription revenues in the quarter. And Time, Inc., again increased its share in overall domestic print advertising.”

Nevertheless, Time Warner Cable lost 155,000 TV subscribers during the last quarter, including digital, compared to 64,000 losses last year at this time. Recently, Comcast reported losing 275,000 subscribers. That’s prompting industry observers to question whether Internet TV is starting to eat into the cable business’s profits.

In September, Networkworld reported that Dell was giving some serious consideration to developing devices that would stream Internet content to run-of-the-mill television sets. According to the report, the company is evaluating new devices from set-top box makers and original design manufacturers (ODMs) that could seamlessly bring Internet content to TVs.

Earlier this year, Google unveiled its Android-powered Google TV platform. And then there’s the Logitech Revue, a set-top box that’s intended to bring the Google TV experience to an existing home entertainment center by allowing users to search and access content anywhere from the Web, from a satellite or cable provider.




Edited by Tammy Wolf

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More