Time Warner Cable shares dipped this morning after the company missed earnings estimates. The cable and internet service provider posted adjusted earnings of $1.54 per share, a 19% year over year decline, on revenue of $5.9 billion. Analysts had been expecting earnings of $1.80 per share and revenue of $5.94 billion.
Time Warner Cable sees record subscriber numbers
Reported earnings were $1.62 per share, while adjusted OIBDA fell to $2.03 billion. Overall revenue increased 3.5% on the back of a 16.2% increase in Business Services revenue and a 2.1% increase in Residential Services revenue. Residential Services revenue increased 2.1% year over year to $2.5 billion, while Business Services revenue increased 16.2% to $803 million.
Time Warner Cable saw a net decline of 45,000 residential video subscribers, but that marked the best second quarter since 2008. The company added 172,000 residential high speed data subscribers, again marking the best second quarter since 2008. Time Warner Cable also recorded its best second quarters in residential voice with 252,000 net adds, residential triple play net adds at 233,000, and residential customer relationship net adds at 66,000.
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Time Warner Cable continues to improve network
The company spent $2.4 billion on capital expenditures in the first half of the year as it invested in improving the customer experience, expanding its network, and adding TWC Maxx services with internet speeds of up to 300 Mbps. Time Warner Cable also upgraded customer equipment and improved the reliability of its network. The company recorded a decline in repair calls by 530,000 compared to last year and a 15% decline in repair-related truck rolls per customer relationship.
Also this morning, Time Warner Cable announced plans to expand its global calling plan for Business Class customers. The company will now include calls to Thailand, Romania and Israel.
As of this writing, shares of Time Warner Cable were down to $188 per share.