10 Updates

Time Warner Cable Earnings Jump 20% Over Broadband Growth

Apr 29 2014, 8:04am CDT | by

Time Warner Cable recently reported its Q1 2014 earnings with 20% jump in quarterly profits to $479 million or $1.70 per share. The revenues grew by 2% to $5.58 billion, led by 11% revenue growth...

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12 weeks ago

Time Warner Cable Earnings Jump 20% Over Broadband Growth

Apr 29 2014, 8:04am CDT | by

Time Warner Cable recently reported its Q1 2014 earnings with 20% jump in quarterly profits to $479 million or $1.70 per share. The revenues grew by 2% to $5.58 billion, led by 11% revenue growth in the broadband business. The company added 269,000 broadband subscribers, the most since the first quarter of 2008. The growth in broadband segment was driven by the higher average revenue per subscriber, which increased by 9% to $46.32. On the pay-TV front, the company managed to cut down its residential subscriber losses to 34,000 as compared to 217,000 subscribers it lost in the last quarter of 2013.
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TWC’s business services segment continued to outperform with 24% revenue gains, driven by the growth in broadband and voice subscribers. Going forward, the company should continue to see robust growth in its broadband business due to the increasing demand for higher speed and connectivity. However, taming the pay-TV subscriber losses remains a key challenge for the company.

See our complete analysis for Time Warner Cable

Pay-TV Subscriber Trends Improve

The pay-TV business contributes around 45% to Time Warner Cable’s value, according to our estimates. During the first quarter, pay-TV revenues declined by 7% to $2.58 billion as compared to the prior year quarter. Pay-TV ARPU remained flat at $74.51 for the quarter.
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The company has been losing video subscribers for several quarters now. The pay-TV operators in the U.S. lost over 104,000 subscribers in 2013. This can be largely attributed to a combination of market saturation, fierce competition, and the increased focus of providers on acquiring higher value subscribers. Moreover, some consumers opt for a lower-cost mixture of over-the-air TV, Netflix and other over-the-top viewing options. While Comcast has managed to turnaround its subscriber losses in the last two quarters over its X1 platform and triple play bundling, it appears a challenging roadmap for Time Warner Cable (Read – Comcast Adds Pay-TV Subscribers For The Second Consecutive Quarter; Q1 Results Impressive With Strong Growth Across The Segments ). Even for Comcast, we believe this turnaround could be short-lived as cord cutting continues and alternate video platforms such as Netflix continue to add more subscribers (Read Netflix Continues To Benefit From Content Superiority ).

Broadband Subscriber Additions Best Since 2008

Broadband contributes close to 34% of Time Warner Cable’s stock value, according to our estimates. Broadband revenues increased by 11% to $1.56 billion in the first quarter. Around $29 million revenues came form DukeNet, which was acquired by Time Warner Cable towards the end of 2013. High speed Internet revenue from business services jumped 20% to $306 million. Broadband has remained the leading growth factor for the cable companies for quite some time now. There is a boom in demand for broadband in the U.S. as there is a growing need for speed and connectivity. Currently, broadband has penetrated into 75% homes and there is still much room left for growth, and this will benefit the cable industry in particular as it accounts for 59% of the U.S. broadband market. We expect Time Warner Cable to continue to add broadband subscribers in the near term.

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Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the De ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbers ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minist ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the so ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in com ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industr ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinra ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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