Time Warner Cable Inc. on Thursday said its fourth-quarter revenues rose to $5 billion, marking a 4 percent increase over the prior-year period, as the company announced plans to buy back billions of dollars in shares.
Time Warner Cable reported a profit of $564 million or $1.76 per basic common share, beating analysts' estimates, according to Bloomberg. In the fourth quarter of 2010, the company reported net income of $392 million or $1.10 per basic common share.
Shares of Time Warner Cable were up almost 8 percent near the end of the regular trading day on the New York Stock Exchange, with the stock recently selling at $74.44.
The New York-based cable operator reported the most growth in business services where revenues grew 37.2 percent to $409 million over the fourth quarter of 2010. Residential service revenues rose a modest 2.6 percent to $4.3 billion while advertising revenues declined 10 percent to $242 million. Time Warner Cable said other revenues increased 1.7 percent to $233 million.
In spite of the revenue growth, Time Warner Cable continued to lose residential television subscribers. In the residential space, the company lost 129,000 video customers, although the company gained 117,000 high-speed Internet subscribers and 37,000 voice customers. During the quarter, Time Warner Cable purchased cable systems from NewWave as well as another small cable system. The company said the adjustments are reflected in its subscriber numbers at year end but not reflected in its customer adds/losses in the fourth quarter.
Time Warner Cable ended the 2011 calendar year with about 14.51 million customers.
In other news Thursday, Time Warner Cable announced plans to repurchase $4 billion in shares and revealed raising its regular quarterly dividend by 17 percent to $0.56 per share. The dividend is payable on March 15 to stockholders of record at the close of business on Feb. 29.