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Time Warner Cable Reports 2012 Third-Quarter Results

Time Warner Cable Inc. (NYSE:TWC) today reported financial results for its third quarter ended September 30, 2012.

Time Warner Cable Chief Executive Officer Glenn Britt said: “Our third-quarter results were good, with most trends similar to the preceding quarter. Our operating results were driven by continued strong performance in residential high-speed data and business services, an acceleration in high-margin political advertising and the contributions from our Insight systems. During the quarter, we remained focused on investing in growing our business, while at the same time ramping capital returns to our shareholders.”

Britt continued, “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.”

FINANCIAL RESULTS

Revenues for the third quarter of 2012 increased 9.2% from the third quarter of 2011 to $5.4 billion. Residential services revenues increased 7.0% to $4.5 billion and business services revenues grew 27.4% to $493 million, while advertising revenues increased 22.2% to $264 million.
                                                         
                           
(in millions; unaudited) 3rd Quarter Year-to-Date 9/30
Change Change
2012 2011 $ % 2012 2011 $ %
Residential services revenues:
Video $ 2,722 $ 2,624 $ 98 3.7% $ 8,230 $ 7,961 $ 269 3.4%
High-speed data 1,279 1,119 160 14.3% 3,744 3,328 416 12.5%
Voice 530 494 36 7.3% 1,577 1,484 93 6.3%
Other   17   13   4 30.8%   47   36   11 30.6%
Total residential services revenues 4,548 4,250 298 7.0% 13,598 12,809 789 6.2%
 
Business services revenues:
Video 83 73 10 13.7% 240 212 28 13.2%
High-speed data 235 187 48 25.7% 667 531 136 25.6%
Voice 83 52 31 59.6% 219 140 79 56.4%
Wholesale transport 47 39 8 20.5% 132 110 22 20.0%
Other   45   36   9 25.0%   128   67   61 91.0%
Total business services revenues 493 387 106 27.4% 1,386 1,060 326 30.8%
 
Advertising revenues 264 216 48 22.2% 740 638 102 16.0%
 
Other revenues   58   58     177   175   2 1.1%
 
Total revenues $ 5,363 $ 4,911 $ 452 9.2% $ 15,901 $ 14,682 $ 1,219 8.3%

Revenues for the third quarter of 2012 benefited from acquisitions, as detailed below.
                                                           
                                   
(in millions; unaudited) 3rd Quarter 2012
Historical Organic Acquisitions Total
TWC (a) % Change (b) Insight NewWave Total TWC
Residential services revenues:
Video $ 2,573 (1.9 %) $ 138 $ 11 $ 149 $ 2,722
High-speed data 1,209 8.0 % 66 4 70 1,279
Voice 489 (1.0 %) 38 3 41 530
Other   17 30.8 %         17
Total residential services revenues 4,288 0.9 % 242 18 260 4,548
Business services revenues 474 22.5 % 17 2 19 493
Advertising revenues 253 17.1 % 11 11 264
Other revenues   58         58
Total revenues $ 5,073 3.3 % $ 270 $ 20 $ 290 $ 5,363
                                     

(a)  Historical TWC amounts exclude the results of (i) Insight Communications Company, Inc. (acquired on February 29, 2012) and (ii) the cable systems acquired from NewWave Communications on November 1, 2011.

(b)  Organic % Change represents the change between the Historical TWC amounts for the third quarter of 2012 and TWC’s results for the third quarter of 2011 included in the table on page 1.
                                                           
                               
(in millions; unaudited) Year-to-Date 9/30/2012
Historical Organic Acquisitions Total
TWC (a) % Change (b) Insight (c) NewWave NaviSite (d) Total TWC
Residential services revenues:
Video $ 7,872 (1.1 %) $ 325 $ 33 $ $ 358 $ 8,230
High-speed data 3,577 7.5 % 154 13 167 3,744
Voice 1,480 (0.3 %) 89 8 97 1,577
Other   45 25.0 %   2       2   47
Total residential services revenues 12,974 1.3 % 570 54 624 13,598
Business services revenues 1,294 22.1 % 38 5 49 92 1,386
Advertising revenues 714 11.9 % 26 26 740
Other revenues   175   2       2   177
Total revenues $ 15,157 3.2 % $ 636 $ 59 $ 49 $ 744 $ 15,901
                                           

(a)  Historical TWC amounts include the results of NaviSite, Inc. (acquired on April 21, 2011) for the period of April 21 through September 30, 2012 and exclude the results of (i) NaviSite from January 1 through April 20, 2012, (ii) Insight and (iii) the cable systems acquired from NewWave.

(b)  Organic % Change represents the change between the Historical TWC amounts for the nine months ended September 30, 2012 and TWC’s results for the nine months ended September 30, 2011 included in the table on page 1.

(c)  Insight amounts represent the financial results of Insight from the date of acquisition (February 29, 2012) through September 30, 2012.

(d)  NaviSite amounts represent NaviSite’s results for the period from January 1 through April 20, 2012.

Excluding the impact from acquisitions:

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