Time Warner Cable earnings, revenue up

Time Warner Cable Inc reported stronger-than-expected quarterly results, helped by higher advertising sales and an increase in subscribers to its voice and high-speed Internet services.

The No 2 US cable television operator's success in signing up more customers to its voice and Internet services softened the blow of the continuing loss of TV customers. It dropped 65,000 basic video customers during the first quarter.

Time Warner Cable is hardly alone -- the entire cable industry faces growing competition for video customers from phone and satellite providers, not to mention Internet-based upstarts such as Netflix Inc and Hulu.

Time Warner Cable has responded by expanding its presence in other areas, particularly high-speed Internet, where it added a better-than-expected 189,000 customers. Most analysts figured it would add closer to 125,000 to 165,000. Subscribers to its phone service also exceeded most expectations at 84,000.                                          

Chief executive Glenn Britt said its high-speed Internet service "is quickly becoming the anchor product in the eyes of consumers," and noted the service now has more than 10 million subscribers.

Time Warner Cable said first-quarter income rose to $325 million, or 93 cents a share, from $214 million, or 60 cents a share, in the same period a year ago.

Adjusted for items, including the tax impact of expired stock options, the company's earnings of $1.01 a share surpassed the average analyst estimate of 98 cents a share, according to Thomson Reuters IBES.

Fueled by higher residential, commercial and advertising sales, revenue increased 5 percent to $4.8 billion. That was largely in line with expectations.