Time Warner Cable Reports 2012 Fourth-Quarter And Full-Year Results

Time Warner Cable Inc. (NYSE: TWC) today reported financial results for its fourth quarter and full year ended December 31, 2012.

Time Warner Cable Chief Executive Officer Glenn Britt said: “We delivered revenue growth of almost 9% in 2012 – powered by our acquisition and successful integration of Insight Communications, continued success in residential high-speed data and business services, and a best-ever year in advertising. In the year ahead, we plan to focus on operational excellence as we invest to capture long-term opportunities and drive profitable growth.”

FINANCIAL RESULTS

Revenue for the fourth quarter of 2012 increased 9.9% from the fourth quarter of 2011 to $5.5 billion. Residential services revenue increased 6.8% year-over-year to $4.6 billion, business services revenue grew 25.9% to $515 million, advertising revenue increased 29.3% to $313 million and other revenue grew 37.9% to $80 million.

Full-year 2012 revenue increased 8.7% year-over-year to $21.4 billion. Residential services revenue grew 6.3% year-over-year to $18.2 billion, business services revenue increased 29.4% to $1.9 billion, advertising revenue increased 19.7% to $1.1 billion and other revenue increased 10.3% to $257 million.

(in millions; unaudited)					4th Quarter																	Full Year
													Change																	Change
					2012				2011				$				%					2012				2011				$				%
Residential services revenue:
Video					$	2,687			$	2,628			$	59			2.2		%			$	10,917			$	10,589			$	328			3.1	%
High-speed data						1,346				1,148				198			17.2		%				5,090				4,476				614			13.7	%
Voice						527				495				32			6.5		%				2,104				1,979				125			6.3	%
Other						17				13				4			30.8		%				64				49				15			30.6	%
Total residential services revenue						4,577				4,284				293			6.8		%				18,175				17,093				1,082			6.3	%
Business services revenue:
Video						83				74				9			12.2		%				323				286				37			12.9	%
High-speed data						245				196				49			25.0		%				912				727				185			25.4	%
Voice						87				57				30			52.6		%				306				197				109			55.3	%
Wholesale transport						52				44				8			18.2		%				184				154				30			19.5	%
Other						48				38				10			26.3		%				176				105				71			67.6	%
Total business services revenue						515				409				106			25.9		%				1,901				1,469				432			29.4	%
Advertising revenue (a)						313				242				71			29.3		%				1,053				880				173			19.7	%
Other revenue						80				58				22			37.9		%				257				233				24			10.3	%
Total revenue					$	5,485			$	4,993			$	492			9.9		%			$	21,386			$	19,675			$	1,711			8.7	%

(a)		Advertising revenue includes revenue from political advertising of $60 million and $5 million for the fourth quarter of 2012 and 2011, respectively, and$114 million and $15 million for the full year of 2012 and 2011, respectively.

Revenue for the fourth quarter and full year of 2012 benefited from acquisitions, as detailed below.
(in millions; unaudited)	4th Quarter 2012
	Historical				Organic					Acquisitions												Total
	TWC (a)				% Change (b)					Insight				NewWave (c)				Total				TWC
Residential services revenue:
Video	$	2,546				(3.1	%)			$	137			$	4			$	141			$	2,687
High-speed data		1,279				11.4	%				66				1				67				1,346
Voice		488				(1.4	%)				38				1				39				527
Other		16				23.1	%				1				—				1				17
Total residential services revenue		4,329				1.1	%				242				6				248				4,577
Business services revenue		498				21.8	%				17				—				17				515
Advertising revenue		299				23.6	%				14				—				14				313
Other revenue		77				32.8	%				2				1				3				80
Total revenue	$	5,203				4.2	%			$	275			$	7			$	282			$	5,485

(a)		Historical TWC amounts include the results of the cable systems acquired from NewWave Communications (acquired on November 1, 2011) fromNovember 1 through December 31, 2012 and exclude the results of (i) Insight Communications Company, Inc. and (ii) the NewWave cable systems fromOctober 1 through October 31, 2012.
(b)		Organic % Change represents the change between the Historical TWC amounts for the fourth quarter of 2012 and TWC’s results for the fourth quarterof 2011 included in the table above.
(c)		NewWave amounts represent the NewWave cable systems’ results for the period from October 1 through October 31, 2012.

(in millions; unaudited)					Full Year 2012
					Historical				Organic					Acquisitions																Total
					TWC (a)				% Change (b)					Insight (c)				NewWave (d)				NaviSite (e)				Total				TWC
Residential services revenue:
Video					$	10,418				(1.6	%)			$	462			$	37			$	—			$	499			$	10,917
High-speed data						4,856				8.5	%				220				14				—				234				5,090
Voice						1,968				(0.6	%)				127				9				—				136				2,104
Other						61				24.5	%				3				—				—				3				64
Total residential services revenue						17,303				1.2	%				812				60				—				872				18,175
Business services revenue						1,792				22.0	%				55				5				49				109				1,901
Advertising revenue						1,013				15.1	%				40				—				—				40				1,053
Other revenue						252				8.2	%				4				1				—				5				257
Total revenue					$	20,360				3.5	%			$	911			$	66			$	49			$	1,026			$	21,386

(a)		Historical TWC amounts include the results of (i) NaviSite, Inc. (acquired on April 21, 2011) from April 21 through December 31, 2012 and (ii) theNewWave cable systems from November 1 through December 31, 2012 and exclude the results of (i) NaviSite from January 1 through April 20, 2012,(ii) Insight and (iii) the NewWave cable systems from January 1 through October 31, 2012.
(b)		Organic % Change represents the change between the Historical TWC amounts for the year ended December 31, 2012 and TWC’s results for the yearended December 31, 2011 included in the table on page 2.
(c)		Insight amounts represent the financial results of Insight from the date of acquisition (February 29, 2012) through December 31, 2012.
(d)		NewWave amounts represent the NewWave cable systems’ results for the period from January 1 through October 31, 2012.
(e)		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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