Despite an economy that is "bouncing along the bottom," in the words of Time Warner Cable (NYSE: TWC-WI) CEO Glenn Britt, the nation's second largest MSO posted a hefty 8.2 percent increase in second quarter profit based on Internet customer gains, higher per-sub revenue and reduced across-the-board corporate spending, the company said.
Financially speaking, TWC posted income of $342 million during the quarter on sales of $4.73 billion. While gaining revenue generating units (RGUs) or subscribers purchasing more than one service, TWC, like most cable companies, lost 44,000 net customers during the quarter, reflecting "the weakness in housing and employment markets as well as competitive pressures," Britt said.
Competitively, Britt added, "I like the business we're in. Although multichannel video is almost fully penetrated, broadband is growing nicely and becoming more a part of people's every day lives. We're seeing tangible evidence that consumers are willing to pay more for the speed and reliability that we offer."
Outside the residential space, Britt said that Time Warner Cable is pursuing commercial customers with abandon and, is now "launching product and service offerings designed to meet the needs of specific customer sets."
- see this news release
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