Tuesday, February 3, 2009

Time Warner Cable Takes $14.8 billion Impairment Charge, Sees Some Declines

Time Warner Cable's revenue in Q4 2008 rose 8% ($313 million) over the prior year to $4.4 billion, however, the company reported a net loss of $8.2 billion, or $8.36 per basic and diluted common share compared to net income for the fourth quarter of 2007 of $327 million, or $0.33 per basic and diluted common share.


Certain pretax items in the current year affected comparability, including a $14.8 billion noncash impairment of cable franchise rights, a $367 million noncash impairment related to the company's investment in Clearwire Corporation, $14 million of costs associated with the Company's planned separation from Time Warner and a $13 million non-cash loss on the sale of cable systems.


Some notes for the period:

  • Revenue generating units ("RGUs") totaled 34.2 million as of December 31, 2008 -- reflecting net additions of 175,000 during the fourth quarter.


  • Customer relationships were 14.6 million, a slight decline of 84,000 from the previous quarter


  • Triple play subscribers reached 3.1 million (or 21% of total customer relationships), benefiting from 110,000 net additions during the fourth quarter.


  • Over 54% of customers received bundled services as of December 31, 2008.


  • The number of residential data subscribers was 8.4 million, up from 8.3 million in the preceding quarter.


  • The company plans to layoff 1,250 employees over the coming weeks.


  • Capital Expenditures were $3.5 billion in 2008, an increase of $89 million over 2007, reflecting higher customer premise equipment purchases.


http://www.timewarnercable.com

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