Time Warner Cable slides 10%
October 28, 2011
Time Warner Cable has missed Wall Street forecasts, sending the cable company’s shares down as much 10 per cent, as it lost more video customers than expected and lost phone customers for the first time. The No. 2 US cable operator said its third-quarter profit missed analysts’ expectations due to mounting programming costs and a drop in premium video subscriptions.
TWC lost 128,000 video subscribers in its residential services in the quarter. However, it added 89,000 subscribers for its broadband services during the period. It also lost 8,000 phone customers, the first quarter it has done so since it started selling voice services.
Chief Financial Officer Irene Esteves reiterated full-year operating profit outlook of double digit growth over a year ago, but warned advertising revenue would be lower.
The company said it benefited from higher prices for video customers during the quarter, but a decline in video subscribers offset those increases.