Share prices for Time Warner Cable Inc. fell by the largest margin in more than a year after news surfaced that the company experienced a larger-than-expected downturn in video subscribers, BloombergBusinessweek reports.
Time Warner Cable, the second-largest U.S. cable-television operator, “fell 6.9 percent to $91.40 at 11:10 a.m. in New York, the biggest intraday drop since October 2011. The shares, which had gained 54 percent this year, were the biggest decliner in the Standard & Poor’s 500 Index today,” the piece reports.
The story adds: “Time Warner Cable lost 140,000 residential video subscribers, more than the 128,000 that analysts had estimated. The cable provider also added fewer Internet and voice customers than analysts projected, a sign Time Warner Cable is struggling to market the correct bundles of services to its customers, said Paul Sweeney, an analyst at Bloomberg Industries.”
Said Sweeney: “It’s a sloppy quarter across the board operationally. Time Warner Cable has long promoted its ability to segment its subscribers. The results this quarter call into question that marketing strategy.”
The story adds: “Net income (TWC) rose to $808 million, or $2.60 a share, from $356 million, or $1.08 a share, a year earlier, the New York- based company said today in a statement. Excluding one-time items, earnings per share were $1.41, missing the $1.43 average analyst estimate compiled by Bloomberg.”
Damage from Hurricane Sandy is not expected to have a significant impact on TWC’s fourth-quarter results, according to a filing by the company. The company announced Nov. 2 that it will credit customers for lost services incurred as a result of the storm.