Time Warner Cable Profit, Revenue Miss Estimates
Time Warner Cable Inc (TWC.N), which is being bought by Charter Communications (CHTR.O), reported lower-than-expected revenue for five quarters in a row as it lost about 45,000 residential video customers.
Cable companies have been struggling with declining subscriber numbers as viewers shift to cheaper and more flexible streaming services offered by Netflix Inc (NFLX.O), Amazon.com Inc (AMZN.O), Hulu and others.
Charter Communications Inc (CHTR.O) said in May that it would buy Time Warner Cable in a cash-and-stock deal, which values the larger rival at $78.7 billion, to compete with Comcast Corp (CMCSA.O).
Regulatory obstacles had earlier sunk Comcast’s (CMCSA.O) bid for Time Warner Cable.
Charter executives are also exploring whether to launch an online video service as part of its combination with Time Warner Cable, Reuters had reported in May.
Net income attributable to common shareholders fell to $463 million, or $1.62 per share, in the second quarter ended June 30, from $499 million, or $1.76 per share, a year earlier.
Excluding items, the company reported earnings of $1.54 per share, missing the average analyst estimate of $1.81 per share.
Revenue rose 3.5 percent to $5.93 billion.
Analysts were expecting revenue of $5.94 billion, according to Thomson Reuters I/B/E/S.
Up to Wednesday’s close, shares of the company have risen about 25 percent this year.