Time Warner Cable Q2 Profit Rises On High-Speed Data Growth

(RTTNews) - Time Warner Cable Inc. (TWC), a provider of video, high-speed data and voice services, Thursday said second-quarter profit increased from the prior year, helped by growth in business services as well as residential high-speed data revenues.

Net income attributable to TWC shareholders grew to $481 million from $452 million in the previous year. Earnings per share rose to $1.64 from $1.43. Adjusted earnings totaled $497 million or $1.69 per share, while it amounted to $466 million or $1.48 per share last year.

On average, 30 analysts polled by Thomson Reuters expected earnings of $1.65 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues grew 2.7 percent to $5.550 billion from $5.404 billion in the prior year. Analysts expected revenues of $5.58 billion.

Residential services revenue edged up 0.3 percent to $4.6 billion. Video revenue slipped 4.4 percent and voice revenue was 4.1 percent lower while High-speed data revenue climbed 12.5 percent due to an increase in average revenue per subscriber.

In business services, revenue grew 21.8 percent to $565 million with double-digit growth in voice, high-speed data and Wholesale transport revenues.

However, advertising revenue slid 1.9 percent to $260 million due to a decline in political advertising revenue, partially offset by growth in revenue from advertising inventory sold on behalf of other video distributors.

Average monthly revenue per residential customer relationship or ARPU grew 1.2 percent to $105.21.

Sequentially, in Residential services, Time Warner Cable added 8,000 high-speed data customers in the quarter while video and voice customers fell. Business services subscribers reported growth across all businesses - Customer relationships, video, high-speed data and voice.

Free cash flow in the first half of the year was $1.4 billion. The company raised its expectation for full-year free cash flow to $2.5 billion from. The firm also increased its remaining share repurchase authorization to $4.0 billion.

TWC settled at $114.07 on Wednesday.