Time Warner Cable (NYSE: TWC) reported second quarter earnings today, and was the first among the major cable companies to provide clues on to what extent pay TV subscriber losses will continue.
The company lost 130,000 video subscribers during the quarter, essentially doubling its pay TV customer cancellations from the previous quarter. Though it managed to grow its average revenue per user and report a $420 million profit, analysts are suggesting the results are a bit underwhelming.
If the pattern of more TV subscribers losses continues with other cable TV companies' quarterly earnings, Wall Street may end up quieting some of its recent excitement over the sector, but it should not go unnoticed that cable TV companies like TWC are continuing to show strong bottom lines at a time when they are losing subscribers in their traditional businesses and seeing content economics fluctuate greatly.
- here's the Wall Street Journal earnings report (sub. req.)
SNL Kagan expects ongoing declines in cable TV subscriptions
Here's a broader look at the cable TV sector's first quarter numbers