Time Warner Cable Inc (TWC.N), the No. 2 U.S. cable TV operator, lost more video subscribers than analysts had expected in the third quarter as more customers opt for internet streaming services offered by companies such as Netflix Inc (NFLX.O).
Time Warner Cable lost a net 184,000 household video customers in the three months ended Sept. 30, far more than the 136,000 that market research firm StreetAccount had estimated.
The company, which is being acquired by market leader Comcast Corp (CMCSA.O) for $45.3 billion, lost a net 152,000 customers in the April-June quarter.
Comcast reported higher quarterly revenue and income last week as more people signed up for high-speed internet and fewer customers dropped their cable subscriptions.
As of Sept. 30, Time Warner Cable had 10.8 million household video subscribers, down from 11.4 million a year earlier.
The company, which gets more than 80 percent of its total revenue from households, also reported lower-than-expected sign-ups for its residential voice and high-speed data services.
Net income attributable to common shareholders fell to $499 million, or $1.76 per share, in the quarter, from $532 million, or $1.84 per share, a year earlier.
Revenue rose to $5.71 billion from $5.52 billion.
On an adjusted basis, the company earned $1.86 per share.
Analysts on average had expected earnings of $1.90 per share on revenue of $5.75 billion, according to Thomson Reuters.
Time Warner Cable’s shares closed at $143.75 on the New York Stock Exchange on Wednesday. The stock was untraded before the opening bell on Thursday. (Reuters)