Thursday, October 27, 2011
Time Warner Cable video revenues slip
Time Warner Cable, the nation's second largest cable operator, said Thursday net income eased 2 percent to $356 million last quarter and it saw video revenue slip year on year. Cable and satellite companies are being closely watched these days for any sign that new and growing video streaming services like Netflix, Amazon and others that are direct to the consumer might be eating into their business. TWC's revenue firmed 3.7 percent to $4.9 billion. Residential services nosed up 2 percent driven by voice, data and higher charges, but the company noted a decline in video subscribers and revenues from premium channels and transactional video-on-demand. Video revenue slipped to $2.6 million from $2.7, the company said. TWC ended the quarter with 14.4 million total subscribers, a hair down from 14.5 the previous quarter ended in June. It lost 128,000 video customers, bringing the total to 11,939. Voice subs also slipped from the June quarter. But the company added 89,000 new data subscribers Advertising revenues decreased primarily as a result of a year-on-year decline in political advertising revenues and weakness in the overall advertising market in TWC's operating areas, partially offset by an increase in revenues from advertising inventory sold on behalf of other video distributors, the company said. Time Warner Cable returned $731 million to shareholders during the quarter in the form of a share buyback (total $1.2 billion planned) and $158 million dividend payout. Contact the Variety newsroom at news@variety.com
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