Cabler lost 140,000 residential video subscribers
Time Warner Cable stock plunged Monday despite muscular profits as video losses were bigger and high-speed gains smaller than Wall Street anticipated.Execs from New York City’s biggest cable provider said they’re assessing network damage from Hurricane Sandy but that it appears limited. Profit surged to $808 million from $356 million, including a one-time gain from the $1.1 billion sale of wireless spectrum to Verizon. Without special items, income rose 27% to $438 million. Revenue grew 9.2% to $5.4 billion led by high-speed data. Ad revenue was up 22% to $264 million on political spending. Programming costs rose more than 8%. The cabler lost 140,000 residential video subscribers from the previous quarter, ending with 12.16 million. It gained 85,000 high-speed subs. Voice was flat. Shares were down nearly 7% in midday trading at $91.63. “Our sympathies go out to those suffering in the wake of Hurricane Sandy, and we are thankful for the efforts of our employees who worked in many ways to help keep our customers informed and connected during the storm, as well as those who have been dealing with the many after-effects,” said CEO Glenn Britt. “We don’t expect the damages to be very significant.” Time Warner Cable donated $600,000 to relief efforts and sent a fleet of vehicles with Wi-Fi and mobile charging stations around lower Manhattan and Staten Island last week.
Follow @Variety on Twitter for breaking news, reviews and more