Time Warner Cable’s earnings report for the second quarter fell short of expectations amid rising programming costs and the continued migration of subscribers away from traditional pay television.
USA Today reports: “The company, which Charter Communications is seeking to acquire, reported earnings of $1.54 per share, falling short of analysts’ estimate of $1.81. Revenue of $5.93 billion rose 3.5%, but missed expectations of $5.94 billion, according to Thomson Reuters I/B/E/S.”
Net income was off 7.2% from the second quarter of 2014, slipping to $463 million from $499 million.
“The cost of programming for TWC’s pay-TV service rose 8.7% to $1.4 billion as the company acquired the rights for the Los Angeles Lakers and L.A. Dodgers for its SportsNet LA regional sports network, USA Today notes. “That led to a 11.6% increase in monthly programming costs for subscribers to $42.73.”
The company’s video households fell by 45,000 while it added a net 172,000 subscribers to broadband, with both numbers representing TWC’s best second-quarter performance since 2008.