NEW YORK (AP) — Time Warner Cable Inc. said Thursday that its second-quarter earnings rose 6 percent, helped by higher revenue from business services and residential high-speed data services.
Its adjusted earnings surpassed Wall Street's expectations and shares rose more than 3 percent in morning trading.
But the nation's second-largest cable company lost home cable TV and phone subscribers, ending the quarter with fewer customers than at the end of March. The New York-based company lost 191,000 cable TV subscribers in the quarter, ending with 11.7 million. And it lost 56,000 voice subscribers, ending with close to 5 million at the end of June. Cable TV subscriptions have been declining across the industry for years, as viewers shift to satellite and phone-company TV services.
Time Warner Cable earned $481 million, or $1.64 per share, in the April-June period. That's up from $452 million, or $1.43 per share, in the same period a year earlier. Adjusted earnings were $1.69 per share in the latest quarter, up from $1.48 per share in the year-ago period.
Revenue grew 3 percent to $5.55 billion from $5.4 billion.
Analysts, on average, had expected earnings of $1.65 per share on revenue of $5.58 billion, according to a poll by FactSet. Analysts typically focus on adjusted earnings figures.
The number of Time Warner's business subscribers increased during the quarter, but it wasn't enough to make up for the decline in total customers from the prior quarter. The company lost 80,000 net customers in the April-June quarter, ending with 15.2 million from 15.3 million as of the end of March.
The company's stock rose $4.06, or 3.6 percent, to $118.13 in morning trading. The stock has traded in the range of $83.83 and $120.93 in the past 52 weeks.