Time Warner Cable 3Q Profit Falls 11 Percent

DEBORAH YAO

Time Warner Cable Inc., the nation's second biggest cable TV operator, said Thursday its profit fell 11 percent in the third quarter, weighed down by heftier interest expenses after piling on debt to separate from its parent, Time Warner Inc.

Revenue also grew at a slower pace in the quarter, as a weak housing market and the sluggish economy meant it was signing up fewer new subscribers while existing customers were not ordering as many premium services. When people move into a new home, they often sign up for cable service.

"Housing trends have not materially rebounded, with high foreclosure rates and home vacancy rates at their highest levels since at least 1966," CEO Glenn Britt said in a conference call with analysts. "Unemployment continues to increase, and of course we're also facing increased competition."

Time Warner Cable said it earned $268 million, or 76 cents per share, in the three months ended Sept. 30 compared with $301 million, or 92 cents a share, a year ago. Operating income rose by 5 percent to $828 million.

Revenue rose 3.7 percent to $4.5 billion from $4.34 billion a year earlier. Earnings were a penny a share shy of analysts' average estimate but revenue topped their forecast of $4.47 billion, according to Thomson Reuters.