Time Warner Cable Inc. (TWC) reported its first-quarter 2013 financial results, where the bottom line beat the Zacks Consensus Estimate while the top line missed the same. Despite the beat, the company lost a major share of video subscribers in the reported quarter.
Quarterly adjusted (excluding special items) earnings per share of $1.41 beat the Zacks Consensus Estimate of $1.38. Quarterly GAAP net income was $401 million or $1.34 per share against $382 million or $1.20 per share in the prior-year quarter.
At $5,475 million, quarterly total revenue fell short of the Zacks Consensus Estimate of $5,488 million, but was up 6.6% year over year. The growth in revenues was mainly attributed to improved advertising sales, strong high-speed data revenue growth and successful integration of Insight Communications.
Quarterly adjusted operating income before depreciation and amortization (:OIBDA) climbed 2.1% year over year to $1,912 million. GAAP operating income grew 1.7% year over year to $1,060 million. During the first quarter of 2013, Time Warner Cable repurchased 7.1 million shares for $660 million and also paid $195 million in dividends.
During the reported quarter, Time Warner Cable generated $1,394 million of cash from operations compared with $1,383 million in the prior-year period. Free cash flow in the first quarter of 2013 was $624 million compared with $677 million in the year-ago quarter.
At the end of the first quarter of 2013, Time Warner Cable had $3,268 million in cash and marketable securities compared with $3,454 million at the end of 2012. Long-term debt at the end of the reported quarter was $24,248 million against $25,171 million at the end of 2012. At the end of the first quarter of 2013, the debt-to-capitalization ratio was 0.78 compared with 0.77 at the end of 2012.
Residential Services Segment
Quarterly total revenue was $4,611 million, up 4% year over year. Within the segment, video revenues were $2,671 million, down 1.5% year over year. High-speed data revenues were $1,406 million, up 17.3% year over year. Voice revenues were $519 million, up 2.2% year over year. Other revenues were $15 million, flat year over year.
Business Services Segment
Quarterly revenues were $537 million, up 25.2% year over year. Within the segment, video revenues were $84 million, up 10.5% year over year. High-speed data revenues were $256 million, up 23.1% year over year. Voice revenues were $96 million, up by a substantial 52.4% year over year. Wholesale transport revenues were $55 million, up 34.1% year over year. Other revenues were $46 million, up 12.2% year over year.