Tuesday, April 29, 2008

Time Warner to Spin-Off Cable Business, Triple Play Reaches 18% Penetration

Time Warner announced plans to separate its cable business from its media assets.

During Q1 2008, Time Warner Cable's revenues grew 8% year over year ($309 million) to $4.2 billion. Subscription revenues were up 8% ($301 million) to $4.0 billion.

Some highlights:

  • Video revenues climbed 4% ($99 million) to $2.6 billion, driven by continued growth in digital video services and video price increases.

  • High-speed data revenues rose 11% ($100 million) to $1.0 billion, fueled mainly by continued year-over-year residential high-speed data subscriber growth.

  • Voice revenues increased 39% ($102 million) to $366 million, reflecting strong Digital Phone subscriber growth. Advertising revenues grew 4% ($8 million) to $197 million.

  • Revenue generating units ("RGUs") reached 33.0 million, reflecting a robust 896,000 net additions.

  • Triple Play subscribers surpassed 2.6 million (or 18% of total customer relationships), benefiting from a record 247,000 net additions.



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