Time Warner Cable Inc (NYSE:TWC) released the earnings results from the third quarter before opening bell this morning, posting adjusted earnings of $1.86 per share on $5.71 billion in revenue, a 3.6% increase year over year. Those numbers came up just short of Wall Street’s estimates of $1.91 per share in earnings and $5.75 billion in revenue. In the same quarter last year, Time Warner Cable reported $5.52 billion in revenue and $1.69 per share in adjusted earnings.
Diluted earnings per share were $1.76, compared to $1.84 per share in last year’s third quarter.
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Key metrics from Time Warner Cable’s earnings report
Time Warner Cable Inc (NYSE:TWC)’s Business Services revenue increased 21.9%, while revenue from residential high-speed data increased 10.9% year over year. Adjusted OIBDA rose 2.4% year over year to $2.1 billion. Average monthly revenue per residential customer relationship increased 1.4% to $106.58.
The company said that its total customer relationship performance was the best in any third quarter of the last six years. Time Warner reported 108,000 in total high speed data net additions, which was the best third quarter performance in five years. The Business Services division connected over 16,000 more commercial buildings to the network.
The cable service provider also finished the all-digital conversion in Los Angeles and New York City, making internet speeds of up to 300 megabits per second available to about 7 million homes in all, including Austin, Tex.
Time Warner Cable’s earnings by segment
During the third quarter, Time Warner Cable Inc (NYSE:TWC) reported a decline in revenue from video and voice which partially offset an increase in revenue from high speed data. The company instituted price increases during the quarter and saw higher revenue from premium networks, thus resulting in higher revenue. An increase in average revenue per subscriber was due to price increase, rental charges for equipment and a higher percentage of subscribers opting for more expensive service tiers.
Revenue in the company’s Business Services segment grew due to increases in voice and high speed data subscribers. Time Warner also recorded growth in cell tower backhaul revenue and the acquisition of DukeNet.