Time Warner Cable 1Q profit falls on higher expenses
NEW YORK—Cable operator Time Warner Cable Inc. reported Wednesday its first-quarter profit slipped 12 percent partly on increased costs and expenses, and Time Warner Inc. said it is working on plans to spin off its remaining stake of the business.
For the period ended March 31, net income fell to $242 million, or 25 cents per share, compared with $276 million, or 28 cents per share, in the prior year.
Quarterly revenue rose 8 percent to $4.16 billion from $3.85 billion a year earlier.
Analysts surveyed by Thomson Financial predicted earnings of 22 cents per share on revenue of $4.14 billion.
Quarterly results included a $5 million, or 1 cent per share, gain related to the sale of a cost-method investment. Year-ago results benefited from an $81 million, or 8 cents per share, gain related to a sale of the company's stake in the Texas and Kansas City Cable Partners LP assets.
Total subscription revenue increased to $3.96 billion from $3.66 billion.
Total costs and expenses grew to $3.52 billion from $3.27 billion.
When Time Warner Inc. reported earnings earlier this morning, Chief Executive Jeff Bewkes said "We've decided that a complete structural separation of Time Warner Cable Inc., under the right circumstances, is in the best interests of both companies' shareholders. We're working hard on an agreement with Time Warner Cable, which we expect to finalize soon."
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