Time WarnerCable Inc. saw an increase in profit and revenue in the firstquarter as it gained more subscribers for its residential services, especiallybroadband.
The company on April 28 reported that its residentialservices added 21,000 video subscribers, 314,000 broadband subscribers and178,000 voice subscribers in the quarter. There were 157,000 triple-playadditions.
Speaking on an earnings call shortly after the companyreported its results, Time Warner Cable CEO Robert Marcus said thatimprovements in Internet and video churn are more pronounced in markets wherethe company's Maxx offering, which provides Internet speeds of up to 300 Mbps,is available. Customer satisfaction also is higher in Maxx markets, the CEOsaid.
Asking about Time Warner Cable's IPTV trial in New York,Marcus said the service reflects where the industry is headed as well thecompany's redoubled efforts to follow evolving consumer trends.
"I think [IPTV] promises a much more customer friendlyexperience, which avoids many of the pain points that have historically markedour business," he said, adding that he expects this to be just one exampleof newer innovations taking hold across the industry.
As to Time Warner Cable's pending with , whichrecently received recommendationsfor conditional approval from both the U.S. Department of Justice and thechairman of the FCC, Marcus said he expects the deal to close in May. The onlyremaining regulatory hurdles are final votes from the FCC and the CaliforniaPublic Utilities Commission, he said.
Time Warner Cable recorded first-quarter net income of $494million, or $1.72 per share, up from $458 million, or $1.59, in the year-agoperiod. On an adjusted basis, net income came to $518 million, or $1.81 pershare, up year over year from $474 million, or $1.65 per share. The companysaid income was up primarily due to an increase in operating income andpartially offset by an increase in income tax provision.
The S&P Capital IQ first-quarter consensus EPS estimatewas $1.76 on a normalized basis and $1.69 on a GAAP basis.
Revenue for the first quarter rose 7.2% to $6.19 billionfrom $5.78 billion a year ago. Free cash flow dropped 15% to $346 million.