UPDATE: Time Warner Cable Q4 Profit Misses Expectations

reported weaker-than-expected earnings for the fourth quarter. The New York-based company posted quarterly net income of $554 million, or $1.95 per share, compared to $540 million, or $1.89 per share, in the year-ago period. Excluding certain items, the company earned $2.03 per share. Its revenue surged to $5.79 billion from $5.58 billion. However, analysts were expecting earnings of $2.08 per share on revenue of $5.81 billion. During the quarter, the company lost 38,000 residential video customers, versus a loss of 85,000 residential video subscribers in the year-ago period. Residential high-speed data customers rose 168,000 in the quarter, while residential voice customers gained 295,000 in the period. Residential triple play customers rose by 273,000 in the quarter. For the full year of 2014, free cash flow slipped 9.9% to $2.3 billion, versus $2.6 billion in 2013. As of December 31, 2014, net debt totaled $23.0 billion. Time Warner Cable Chairman and CEO Rob Marcus said: “Our fourth quarter marked a strong finish to a really positive year for Time Warner Cable. As a result of record Q4 subscriber net adds and the investments we made all year in our plant, products and customer care, we enter 2015 with tremendous operating momentum.” Time Warner Cable shares fell 3.65% to close at $139.10 yesterday.