Broadband, phone subscribers boost bottom line
Despite losing TV subscribers in the fourth quarter, Time Warner Cable boosted profits by 22% to $392 million on revenue gains of 5.9% to $4.8 billion, the company said Thursday.Much of the growth for the nation’s second-largest cable operator came from big gains in broadband and telephony, which added 94,000 and 72,000 subscribers, respectively. The loss of 141,000 TV subs in the quarter, the second-biggest quarterly loss ever for Time Warner Cable, will undoubtedly spur further speculation that consumers are cutting the cord on monthly TV services, opting instead to view programming on such services as Netflix and Hulu. Time Warner Cable CEO Glenn Britt reiterated the industry’s position that it’s the economy that has impacted subscriber losses, not Internet video. The bulk of the subscribers dropping their plans in the quarter were so-called single- play subs. For the full year, Time Warner Cable posted a 5.6% revenue gain to $18.9 billion and 22% jump in profits to $1.3 billion. The company also announced Thursday that it was increasing its dividend by 20% to 48¢.