The company, which is trying to convince investors it can do a
better job at operating its business than its suitor Charter, said
its three year operating plan is to generate revenue of $25.7
billion and adjusted operating income before depreciation and
amortization of $9.4 billion by 2016.
"We have the right team and a strategic plan to deliver strong
long-term, sustainable results," the company said in its
presentation on its website.
CEO Rob Marcus, who took over January 1, kicked off the conference
call saying he is committed to creating shareholder value and that
Charter's recent bid to acquire Time Warner Cable significantly
undervalues our company.
Marcus also dismissed the notion that Time Warner Cable is behind
Charter in any way. Charter's campaign for investor support to its
$37.3 billion bid has focused on how Charter could run Time Warner
Cable better under its CEO Tom Rutledge
The company released a presentation showing how Time Warner Cable
has higher margins than Charter and offers more products and a
better business services unit, which is the fastest growing area in
the cable industry right now.
Time Warner Cable said it is aiming to increase annual capital
spending to $3.7 billion to $3.8 billion over the next three years,
which should allow the company to improve the technology of its
cable systems, invest in infrastructure and replace older equipment.
"We need to focus on product enhancements that move the dial,"
The company said revenue would rise 4 percent to 5 percent this
year, above the roughly 2 percent analysts are expecting, according
to Thomson Reuters I/B/E/S.
The company said it lost 217,000 video subscribers in the quarter,
which was an improvement from the third quarter when it lost more
than 300,000 subscribers.
Time Warner Cable's finance chief Arthur Minson said on the call
that some of Time Warner Cable's subscriber numbers in 2013 were
"dismal" but said the company was now seeing some momentum in 2014.
[to top of second column]
In the fourth quarter, the U.S. cable operator added 39,000 net
residential Internet subscribers, a turnaround from a weak third
quarter when it lost 24,000 subscribers.
The company said residential subscriber activity improved
sequentially each month in the quarter and continued to improve in
Cable operators in the United States are increasingly depending on
Internet customers for growth as they face rising programming costs
and continue to lose cable TV subscribers to telecom and satellite
Net income attributable to Time Warner Cable rose 5 percent to $540
million, or $1.89 per share, in the fourth quarter, from $513
million, or $1.68 per share, a year earlier.
Revenue rose about 2 percent to $5.58 billion.
Analysts on average expected earnings of $1.73 per share on revenue
of $5.56 billion, according to Thomson Reuters I/B/E/S.
Shares of the company were flat in pre-market trading at $132.03 per
(Reporting by Neha Alawadhi in
Bangalore; editing by Savio D'Souza and Nick Zieminski)
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