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Release Date: 07/28/2011

(NEW YORK, NY) – Time Warner Cable Inc. (NYSE: TWC) today reported financial results for its second quarter ended June 30, 2011.

Time Warner Cable Chief Executive Officer Glenn Britt said:  “Time Warner Cable continued to perform well in the second quarter, driven by very strong results in business services and higher residential ARPU.  We also continued to generate strong free cash flow while still investing in our core business, allowing us to return more than $1 billion to our shareholders.”


Revenues for the second quarter of 2011 increased 4.4% from the second quarter of 2010 to $4.9 billion.  Residential services revenues grew 2.5% year-over-year to $4.3 billion, business services revenues increased 34.7% to $361 million, advertising revenues grew 4.2% to $225 million and other revenues increased 5.5% to $58 million.
Residential services revenue growth was driven by increases in high-speed data and voice revenues.  The growth in residential high-speed data revenues was the result of growth in high-speed data subscribers and increases in average revenue per subscriber (due to both price increases and a greater percentage of subscribers receiving higher-priced tiers of service).  Residential voice revenues increased as a result of an increase in voice subscribers.  Residential video revenues were essentially flat year-over-year as price increases and a greater percentage of subscribers receiving higher-priced tiers of service, as well as increased revenues from equipment rental and installation charges and DVR service were offset by a decline in video subscribers and revenues from transactional video-on-demand and premium channels.  Business services revenue growth was due primarily to increases in voice and high-speed data subscribers, an increase in cell tower backhaul revenues and the closing of the NaviSite, Inc. acquisition on April 21, 2011, which contributed $26 million of revenue during the second quarter.  Advertising revenue growth was primarily driven by a year-over-year increase in revenues from advertising inventory sold on behalf of other video distributors, partially offset by a decline in political advertising revenues.

Adjusted Operating Income before Depreciation and Amortization (“Adjusted OIBDA”) rose 4.2% over the second quarter of 2010 to $1.8 billion.  The increase was driven by revenue growth, partially offset by a 4.6% increase in operating expenses.  Operating expenses grew primarily due to higher employee costs, video programming expenses and consulting and professional fees, partially offset by a decrease in voice costs.  Employee costs were up 5.1% to $1.0 billion, primarily as a result of compensation increases and higher headcount in business services, including NaviSite.  Business services employee costs increased 34.4%.  Video programming expenses grew 4.1% to $1.1 billion due to contractual rate increases and increased retransmission consent expense offset, in part, by a decline in video subscribers.  Voice costs were down 9.6% to $151 million due to a decrease in delivery costs per subscriber related to the in-sourcing of voice transport, switching and interconnection services, partially offset by an increase in subscribers.

Operating Income was up 15.8% over the second quarter of 2010 to $1.1 billion driven by higher Adjusted OIBDA and lower amortization expense.

Adjusted OIBDA less Capital Expenditures for the first six months of 2011 totaled $2.2 billion, a 12.4% increase over the first six months of 2010, due to higher Adjusted OIBDA and lower capital expenditures.  Capital Expenditures were $1.4 billion in the first six months of 2011, a 7.4% decrease from the first six months of 2010, largely reflecting lower residential capital spending.  This decline in residential capital spending was primarily attributable to lower spending on customer premise equipment and upgrades/rebuilds, partially offset by higher support capital and scalable infrastructure spending.

Net Income Attributable to TWC Shareholders was $420 million, or $1.25 per basic common share and $1.24 per diluted common share, for the second quarter of 2011 compared to $342 million, or $0.96 per basic and $0.95 per diluted common share, for the second quarter of 2010.

Free Cash Flow for the first six months of 2011 increased 42.4% to $1.7 billion from $1.2 billion in the first six months of 2010, due mainly to higher cash provided by operating activities and lower capital expenditures.  Cash Provided by Operating Activities for the first six months of 2011 was $3.1 billion, a 14.4% increase from $2.7 billion in the first six months of 2010.  This increase was driven by a change in working capital (primarily net income tax refunds related to bonus depreciation, partially offset by an increase in net interest payments) and higher Adjusted OIBDA.

Net Debt and Mandatorily Redeemable Preferred Equity totaled $21.0 billion as of June 30, 2011 compared to $20.4 billion as of December 31, 2010, as the cash used for share repurchases, dividend payments and the acquisition of NaviSite was greater than Free Cash Flow.

Time Warner Cable returned over $1 billion to shareholders during the quarter.  Share repurchases during the second quarter of 2011 totaled $863 million, or 11.5 million shares of common stock.  As of June 30, 2011, approximately $1.8 billion remained under the Company’s share repurchase authorization.  Time Warner Cable also paid regular dividends of $163 million during the second quarter of 2011.


Non-GAAP Financial Measures

The Company refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including OIBDA, Adjusted OIBDA, Adjusted OIBDA less Capital Expenditures and Free Cash Flow.  Refer to Note 2 to the accompanying consolidated financial statements for a discussion of the Company’s use of non-GAAP financial measures.

* Please click here to view the unaudited Time Warner Cable Inc. Consolidated Balance Sheet

About Time Warner Cable

Time Warner Cable Inc. (NYSE: TWC) is among the largest providers of video, high-speed data and voice services in the United States, connecting more than 14 million customers to entertainment, information and each other. Time Warner Cable Business Class offers data, video and voice services to businesses of all sizes, cell tower backhaul services to wireless carriers and, through its NaviSite subsidiary, enterprise-class hosting, managed application, messaging and cloud services.  Time Warner Cable Media, the advertising arm of Time Warner Cable, offers national, regional and local companies innovative advertising solutions. More information about the services of Time Warner Cable is available at,,, and

Additional details on financial and subscriber metrics are included in the Trending Schedules posted on the Company’s Investor Relations website at

Information on Conference Call

Time Warner Cable’s earnings conference call can be heard live at 8:30 am ET on Thursday, July 28, 2011. To listen to the call, visit

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, and other factors affecting the operations of Time Warner Cable Inc.  More detailed information about these factors may be found in filings by Time Warner Cable Inc. with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.  Time Warner Cable is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.


Corporate Communications
Alex Dudley (212) 364-8229
Justin Venech (212) 364-8242

Investor Relations
Tom Robey (212)364-8218
Laraine Mancini (212) 364-8202

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