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Time Warner Cable Inc. (NYSE:TWC) today reported financial results for its first quarter ended March 31, 2014.
Time Warner Cable Chief Executive Officer Rob Marcus said: “I’m very pleased with our performance this quarter. Our residential subscriber growth was the best in five years and our business services revenue growth was close to 25 percent. These results underscore our commitment to deliver on our financial and operating plan as we prepare for our merger with Comcast.”
SELECTED CONSOLIDATED FINANCIAL RESULTS
(in millions, except per share data; unaudited)
Adjusted OIBDA (a)
Operating Income (b)
Diluted EPS (c)
Adjusted Diluted EPS (a)
Cash provided by operating activities (b)
Free Cash Flow (a)(b)
Refer to Note 4 to the accompanying consolidated financial statements for definitions of Adjusted OIBDA, Adjusted Diluted EPS and Free Cash Flow and below for reconciliations.
Operating Income is reduced by merger-related and restructuring costs of $80 million and $31 million for the first quarters of 2014 and 2013, respectively. Cash provided by operating activities and Free Cash Flow are reduced by merger-related and restructuring payments of $58 million and $29 million for the first quarters of 2014 and 2013, respectively.
Diluted EPS represents net income per diluted common share attributable to TWC common shareholders.
First-quarter 2014 revenue grew 2.0% year over year, driven primarily by growth of 24.4% in business services revenue and 10.8% growth in residential high-speed data revenue.
Adjusted OIBDA increased 3.6% to nearly $2.0 billion. Operating Income increased 3.0% to nearly $1.1 billion.
Adjusted Diluted EPS increased 26.2% to $1.78. Diluted EPS increased 26.9% to $1.70.
First-quarter 2014 average monthly revenue per residential customer relationship (ARPU) grew 0.6% to $105.45. Residential high-speed data ARPU increased 8.7% to $46.32.
Overall first-quarter residential subscriber performance was the best in five years.
Residential customer relationship net additions of 148,000 – most in over seven years
Residential triple play net additions of 82,000 – most since first quarter 2012
Residential high-speed data net additions of 269,000 – most since first quarter 2008
Residential voice net additions of 107,000 – most since first quarter 2012
Residential video net loss of 34,000 – least in five years
“TWC Maxx” rollout, including high-speed data speed increases to as much as 300 Mbps, has now begun in parts of New York City and Los Angeles.
TWC’s cloud-based guide with an advanced VOD portal was installed on 4.3 million set-top boxes at the end of the first quarter.
IntelligentHome net additions of 13,000 marked the best quarter ever; 57,000 customers at the end of the first quarter.
CHANGES IN BASIS OF PRESENTATION
Effective in the first quarter of 2014, the Company determined it has three reportable segments: Residential Services, Business Services and Other Operations. Additionally, during the first quarter of 2014, the Company revised its categorization of operating costs and expenses to be consistent with how such costs and expenses are presented to management and to provide a more meaningful presentation. The Company has recast its financial information and disclosures for prior periods to include (i) disclosure of segment results, which are discussed further below in “Detailed Segment Results” and Note 3 to the accompanying consolidated financial statements, and (ii) the revised categorization of operating costs and expenses, which had no impact on total operating costs and expenses, Operating Income or net income attributable to TWC shareholders for any period presented.