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Time Warner Cable Posts Mixed Q3 Results

Time Warner Cable kicked off the third-quarter earnings season Thursday
morning with mixed results, as high-speed data revenue and subscribers
continued to perform well, but basic video and phone performance was
below some analysts' expectations.

Total revenue for the second-largest MSO in the
country was up about 4% to $4.91 billion, slightly below consensus
estimates of $4.95 billion. Adjusted operating income before
depreciation and amortization was also up 4% to $1.8 billion. While
high-speed data and business services revenue continued to rise, up by
8% and 35%, respectively, basic video and phone fell below estimates.
Time Warner Cable lost 128,000 basic video customers in the period
(compared to the 155,000 it lost in the same period last year) and phone
customers declined by 8,000, its weakest performance since VoIP service
was introduced. High-speed data customers increased by 89,000 in the
period, slightly below consensus estimates of 98,000.

In a research note early Thursday, ISI Group cable and satellite
analyst Vijay Jayant wrote that results were "nothing better than OK and
might leave some with a little to be desired," adding that the stock
may have to brace for a wild ride his morning as investors let those
results sink in.

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