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

Stocks in this article: TWC

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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