This story was written by Joseph Weisenthal.
Time Warner (NYSE: TWX) Cable, which is in the process of being fully spunoff from its parent, reported Q2 revenue of $4.3 billion, an increase of 7 percent over last year. The number was a shade behind analyst esimates of $4.33 billion. Net income of $277 million was just slightly ahead of last year's $272 million. But the company identified $62 million in after-tax charges that affect comparability. EPS for the quarter adjusted would have been $.34 per share, ahead of the $.32 analysts had been expecting.
Not surprisingly, voice and high speed revenue were the growth engines, while video revenue was up just 2 percent. Data was up 12 percent in the quarter to $1.03 billion and voice grew 39 percent to $397 million. In the past quarter, the company added 200,000 high-speed data subs, bringing its total to 8.1 million.
For the full year, the company expects revenue growth of 9 percent. It did lower its outlook to a range of $1.10-$1.5 (analysts had been looking for $1.27), which it attributed to transactions costs related to the spin. It didn't cite competition or the economy for this revision.
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By Joseph Weisenthal