Time Warner Cable Misses Q1 Expectations

reported weaker-than-expected results for the first quarter. The New York-based company posted a quarterly profit of $458 million, or $1.59 per share, versus a year-ago profit of $479 million, or $1.70 per share. Excluding certain items, the company earned $1.65 per share. Its revenue rose 3.5 percent to $5.78 billion. However, analysts were expecting a profit of $1.88 per share on revenue of $5.83 billion. The average estimate among 7 Estimize users was for earnings of $1.92 per share and revenue of $5.81 billion. During the quarter, the company added a net 205,000 residential customer relationships. Residential high-speed data customers increased by a net 315,000, while residential voice customers rose by a net 320,000. Residential video customers climbed by 30,000 in the quarter, while triple play customers surged by a net 298,000. Business services revenue rose 16.9 percent year-over-year, while residential services revenue climbed 2.1 percent in the quarter. Adjusted OIBDA rose 0.8 percent year over year to $2.0 billion. Time Warner Cable Chairman and CEO Rob Marcus said, "By almost any measure, Q1 was our best subscriber quarter ever. We've made significant investments to improve our customers' experience and our operational performance, and they are paying off. We are a far stronger company than we were just five short quarters ago." Time Warner Cable shares rose 0.88 percent to $159.25 in after-hours trading.