Time Warner Cable Inc. is definitely making inroads in the business market.
Business services revenues increased 37.5 percent year over year to $429 million in the first quarter, the nation’s second-largest cable TV operator reported Thursday. In total, revenues rose 6.4 percent to $5.1 billion, helped partially by a 4.1 percent increase in residential services revenues ($4.1 billion).
“Time Warner Cable’s first quarter results reflect continued strong performance, and residential Internet and business services were standouts,” said the company’s CEO Glenn Britt.
Time Warner Cable acknowledged that a number of acquisitions over the last several months boosted its overall revenues. The company said it benefitted from the February 2012 acquisition of Insight Communications Company, Inc., the NewWave Communications cable system purchase during the fourth quarter of 2011 as well as the NaviSite Inc. acquisition in the second quarter of 2011.
The $230 million acquisition of NaviSite enabled TWC to expand into the managed-services sector because NaviSite is a provider of enterprise-class hosting, managed application, messaging and cloud services.
“Excluding the impacts from acquisitions, business services revenue growth was due primarily to increases in high-speed data and voice subscribers and growth in cell tower backhaul and Metro Ethernet revenues,” Time Warner Cable explained in its first-quarter earnings.
In spite of overall residential revenue growth, Time Warner Cable lost 94,000 home video subscribers. However, the company added 214,000 residential video customers and 112,000 voice customers.
TWC reported that its net income attributable to shareholders grew to $382 million, or $1.21 per basic common share, compared to $325 million, or 94 cents per basic common share, in the first quarter of 2011.
As of March 31, Time Warner Cable listed 15.35 million customer relationships.