NEW YORK, NY – Time Warner Cable Inc. (NYSE: TWC) today reported financial results for its fourth quarter and full year ended December 31, 2010.
Time Warner Cable Chief Executive Officer Glenn Britt said: “We made great strides financially and operationally in 2010. We achieved record free cash flow and continued to deliver on our shareholder-oriented
capital allocation strategy. At the same time, we enhanced our products and services, increased the sophistication of our marketing and accelerated the growth of our commercial business. We look forward to the challenges and opportunities in the new year as we strive to deliver great service and quality products to our customers.”
Revenues for the fourth quarter of 2010 increased 5.9% from the fourth quarter of 2009 to $4.8 billion. Subscription revenues grew 4.6% year-over-year to $4.5 billion, driven by a 3.5% increase in residential subscription revenues and a 23.0% increase in commercial subscription revenues. Advertising revenues increased 33.8% to $269 million.
Full-year revenues increased 5.6% over 2009 to $18.9 billion. Subscription revenues grew 4.8% to $18.0 billion, with residential subscription revenues increasing 3.9% and commercial subscription revenues growing 21.1%. Advertising revenues increased 25.5% to $881 million.
In both the fourth quarter and full year of 2010, residential subscription revenue growth was driven by increases in high-speed data, video and voice revenues. The growth in residential high-speed data revenues was the result of growth in high-speed data subscribers and, to a lesser extent, increases in average revenues per subscriber (due to both price increases and improved subscriber mix). Residential video revenues increased as a result of increases in average revenues per subscriber (due to price increases, improved subscriber mix and increased DVR service revenues), partially offset by a decline in video subscribers. The growth in residential voice revenues was driven by an increase in Digital Phone subscribers, partially offset by a decrease in average monthly revenues per Digital Phone subscriber. Commercial subscription revenue growth was due primarily to an increase in cell tower backhaul revenues, increases in Business Class Phone and high-speed data subscribers and higher Metro Ethernet revenues. Advertising revenue growth for both the quarter and full year was driven by increases in a wide range of categories, most significantly political, automotive and media. Political advertising was $42 million in the fourth quarter of 2010 and $74 million in the full-year 2010 compared to $8 million and $20 million in the comparable periods of 2009.
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