Time Warner Cable's (TWC) share price gained over three per cent today, after it posted better-than-expected results for the third quarter, ahead of being taken over by Charter Communications.
The company posted revenue of $5.9bn (£3.9bn) for the three months to 30 September, up 3.6 per cent on $5.7bn in the same period of last year. Diluted earnings per share fell by 13.1 per cent, from $1.76 to $1.53.
Capital expenditure was reduced by 0.2 per cent, from $1.105bn to $1.103bn.
The firm lost 7,000 video subscribers, but gained 232,000 high-speed data customers. In double play, TWC dropped 121,000 subscribers, but fared better in triple play, where it added 218,000.
Why it's interesting
The third quarter results beat analysts' expectations, with profit better than expected, and more high-speed data customers joining than forecast. Charter finalised its $55bn takeover of TWC in May, in a deal valuing TWC at $79bn, and with the transaction set to close early next year, these results will be a boost to investors in both firms.
What TWC said
Chief exec Rob Marcus said: “I’m very excited about the operating momentum reflected in our third-quarter results. Subscriber growth was the strongest in years; revenue growth accelerated; and we continued to make significant investments in our network, equipment, products and customer service.
"Our ongoing transformation is a testament to the strength of our operating plan and the commitment of our entire team – all 55,000 employees – who work tirelessly every day to make Time Warner Cable an even better company."
The move into the internet market looks like a sensible one for TWC.