Time Warner Cable 1Q Results

On April 29, Connecticut-based Time Warner Cable announced its 2009 first quarter financial results.

“Time Warner Cable performed well in the first quarter, growing revenues, adjusted OIBDA and free cash flow from last year. We added very healthy numbers of new subscribers to our video, high-speed data and phone services, and our commercial services business continued to grow rapidly,” Time Warner Cable CEO, Glenn Britt, said. “We’re excited to be an independent company. Cable is a very good business, and our operations are strong and growing despite a challenging economy. We continue to generate very healthy free cash flow which will enable us to reduce debt over the next year.”

Time Warner Cable’s 1Q revenues grew by 5%, or $204 million, since 1Q 2008. Increasing 6%, subscription revenues reached $4.2 million – a $256 million increase. Video revenues grew by $64 million, or 2%, causing the total to reach $2.7 billion. The increase was the result of video rate increases and perpetual growth in digital video subscriptions. Revenue was partly offset by a year-over-year decrease in basic video subscriptions, as well as premium channel and transactional VOD revenues.

Increasing by $107 million, or 11%, total high-speed data revenues reached $1.1 billion during the first quarter of 2009. The growth was driven by steady residential high-speed data subscriber growth, and improved average revenue per commercial subscriber. Up 23% since 2008, voice revenues increased by $85 million. Total voice revenues now exceed $450 million.

Operating income increased by $80 million, or 13%, since 2008. This brings the total revenue up to $716, resulting from a higher Adjusted OIBDA and a lower amortization and depreciation expense – $18 million – offset partially by an increase in restructuring costs – $14 million.

For a detailed account of Time Warner Cable’s first quarter results, please visit www.timewarnercable.com.