Time Warner Cable Sees Subscriber Gains

Time Warner Cable Inc., which is set to merge with Charter Communications Inc. following regulatory approval this week, posted better-than-expected profit and revenue in the first quarter on residential and business subscribers growth.

Chief Executive Rob Marcus said that the company's network has become more reliable in the past few years and that first-quarter results reflected that the company has "refined our marketing, enhanced our sales channels and strengthened our retention capability."

Federal regulators Monday moved to approve Charter's $55 billion acquisition of Time Warner Cable—but said the combined cable giant would have to live under several stringent conditions that single it out among industry rivals.

The New York cable company in May agreed to be acquired by Charter Communications Inc. for $55 billion.

Time Warner Cable said it added 236,000 residential subscribers in the March quarter, boosting revenue in the segment by 5.8% to $4.93 billion. The company credited demand for high-speed data as well as price increases and higher equipment charges.

Revenue from business services jumped 13%, also driven by high-speed data. The company added 13,000 new business subscribers during the quarter.

Over all, Time Warner reported a profit of $494 million, or $1.72 a share, up from $458 million, or $1.59 a share, a year earlier. Excluding certain items, earnings per share rose to $1.81 from $1.65.

Revenue increased 7.2% to $6.19 billion. Analysts expected $1.74 in adjusted per-share profit on $6.14 billion in revenue, according to Thomson Reuters.

Time Warner attributed a 6.6% increase in expenses to higher spending on programming, employee and insurance costs.

Shares in the company, up 32% over the past 12 months through Wednesday's close, were inactive premarket.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 07:35 ET (11:35 GMT)

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