Time Warner Cable Reports 2009 Third Quarter Financial Results

In a November 5 release, Time Warner Cable reported that revenues for the third quarter of 2009 increased 4 percent over the prior year quarter to $4.5 billion. Subscription revenues grew 5 percent to $4.3 billion driven by video price increases and continued growth in digital video, high-speed data and Digital Phone subscribers, partially offset by a year-over-year decrease in basic video subscribers (resulting, in part, from the sale of a group of small cable systems in December 2008). Advertising revenues declined 19 percent to $182 million, due primarily to year-over-year declines in the auto, media and political categories.

Net Income Attributable to TWC was $268 million, or $0.76 per basic and diluted common share, for the third quarter of 2009. Net income attributable to TWC decreased for the third quarter of 2009 compared to the third quarter of 2008 due primarily to higher interest expense related to the debt incurred to fund the Company's $10.9 billion special cash dividend paid in March 2009, partly offset by an increase in Operating Income and decreases in net income attributable to non-controlling interests and income tax expense. Refer to Note 2 to the accompanying consolidated financial statements for details regarding certain items affecting the comparability of net income attributable to TWC for the third quarter of 2009 to that of the third quarter of 2008.

Adjusted OIBDA less Capital Expenditures for the first nine months of 2009 was $2.5 billion, a 27 percent increase over the first nine months of 2008, due to lower capital expenditures and higher Adjusted OIBDA. Capital Expenditures for the first nine months of 2009 totaled $2.3 billion, an 11 percent decrease compared to the first nine months of 2008, largely reflecting lower residential capital spending, particularly lower spending on customer premise equipment, upgrades/rebuilds and line extensions, partially offset by higher commercial capital spending.

Free Cash Flow for the first nine months of 2009 increased 19 percent to $1.5 billion from $1.3 billion in the first nine months of 2008, due mainly to lower capital expenditures, partially offset by a decrease in cash provided by operating activities. Cash Provided by Operating Activities for the first nine months of 2009 was $3.8 billion, a 2 percent decrease from $3.9 billion in the first nine months of 2008. This decrease was related primarily to an increase in net cash interest payments, offset partly by higher Adjusted OIBDA, lower pension plan contributions and a change in working capital requirements. Free Cash Flow per diluted common share was $4.29 for the first nine months of 2009 compared to $3.85 in the first nine months of 2008.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

For full details on Time Warner Cable Inc (TWC) TWC. Time Warner Cable Inc (TWC) has Short Term PowerRatings at TradingMarkets. Details on Time Warner Cable Inc (TWC) Short Term PowerRatings is available at This Link.