Time Warner Cable and MasterCard released their latest earnings reports before opening bell this morning. Time Warner Cable posted adjusted earnings of $1.62 per share, a decline of 13% year over year, on revenue of $5.92 billion, a 3.6% increase. Analysts had been expecting earnings of $1.55 per share and revenue of $5.96 billion.
MasterCard reported adjusted earnings of 91 cents per share on revenue of $2.53 billion. Analysts had been looking for earnings of 88 cents per share and $2.55 billion in revenue.
ValueWalk's Raul Panganiban interviews William Burckart, The Investment Integration Project’s President and COO, and discuss his recent book that he co-authored, “21st Century Investing: Redirecting Financial Strategies to Drive System Change”. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors.
Time Warner Cable’s profit slips
Time Warner Cable’s reported earnings fell 13% to $1.53 per share. Business Services revenue climbed 15.5%, while Residential Services revenue increased 2.6%. Adjusted OIBDA fell 3.6% to almost touch $2 billion following aggressive investments and pension expenses. Excluding the pension expense, it fell 2.2%.
The cable TV provider set a new record for third quarter residential subscribers. The number of residential video subscribers fell 7,000, but it was still Time Warner Cable’s best third quarter since 2006. The company added 232,000 high speed data subscribers, also marking the best third quarter since 2006. It added 237,000 voice subscribers and 218,000 triple play subscribers for its best third quarter since 2007 on both metrics. The company also added 147,000 residential customer relationships, marking the best third quarter ever and the first third quarter with positive net adds since 2008.
As of this writing, shares of Time Warner Cable were inactive in premarket trading. They closed Wednesday up 1.04% at $185.25 per share.
MasterCard records higher purchase volumes
MasterCard’s net earnings were 86 cents per share, a 1% increase on a reported basis or 9% on a currency adjusted basis. The company saw cross-border volumes increase 16%, and the number of processed transactions rose 12% to 12.3 billion. Gross dollar volumes increase 13% in local currencies to $1.2 trillion. Higher rebates and incentives partially offset these positives. Worldwide purchase volume increased 12% in local currencies to $852 billion. As of the end of September, MasterCard’s customers had issued 2.2 billion branded cards.
As of this writing, shares of MasterCard were down 0.06% at $100 per share in premarket trading.