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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