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Time Warner Earnings

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Last month the Wall Street Journal reported that Time Warner senior executives are considering reducing the company’s cable TV holdings. That statement comes apparently despite significant growth in Time Warner’s cable business. In this morning’s earnings call, the company announced double-digit profit increases in both AOL and Time Warner Cable. That’s double-digit profit increases.

Time Warner’s acquisition of Adelphia assets certainly contributed to TWC’s 61% revenue bump, but the company saw a 12% growth in revenues in legacy systems alone. Meanwhile, average revenue per user (ARPU) for basic video subscribers is at about $91. Clearly I’m in the wrong business.

The Time Warner earnings announcement follows on the heels of Comcast’s impressive Q1. I believe the rumors of the death of cable have been greatly exaggerated.

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  1. [...] Time Warner Earnings: Connected Home 2 Go [...]

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