UPDATE: Time Warner Cable Q3 Profit Misses Estimates

Time Warner Cable

reported weaker-than-expected third-quarter earnings. The New York-based company posted a quarterly profit of $499 million, or $1.76 per share, versus a year-ago profit of $532 million, or $1.84 per share. On an adjusted basis, the company's profit climbed to $1.86 per share from $1.69 per share. Its revenue surged 3.6% to $5.71 billion versus $5.52 billion. However, analysts were expecting earnings of $1.90 per share on revenue of $5.75 billion. Residential Services revenue gained 0.8%, while Business Services revenue jumped 21.9%. Residential high-speed data revenue climbed 10.9% in the quarter. Adjusted OIBDA climbed 2.4% y/y to $2.1 billion. The company lost 184,000 residential video customers in the third quarter. Average monthly revenue per residential customer relationship gained 1.4% to $106.58 in the quarter. For the first nine months of 2014, free cash flow slipped 20.6% to $1.5 billion. Time Warner Cable Chairman and CEO Rob Marcus said: “We're executing well against our plan, with solid financial performance and strong subscriber momentum. We continue to expect the Comcast merger to close early in 2015.” Time Warner Cable shares rose 0.81% to close at $143.75 yesterday.