Time Warner Cable video subscribers down 217,000 in 4Q 2013

NEW YORK — Time Warner Cable Inc. (NYSE:TWC) today reported financial results for its fourth quarter and full year ended December 31, 2013.

For both the fourth quarter and full year, residential services revenue growth was primarily driven by an increase in high-speed data revenue, partially offset by declines in video and voice revenue.

Residential video revenue decreased, driven by declines in video subscribers and premium network revenue (which, for the full year of 2013, was reduced by approximately $15 million of subscriber credits issued in the third quarter in connection with a temporary blackout of Showtime resulting from a dispute with CBS) and lower transactional video-on-demand revenue, partially offset by price increases and a greater percentage of subscribers purchasing higher-priced tiers of service.

Operational Highlights

TWC’s first generation cloud-based guide with an advanced VOD portal was installed on 2.8 million set-top boxes at year end.

As of December 31, 2013, TWC’s video customers had access to 183 HD channels on average.

The TWC TV® app is now available on the Amazon Kindle Fire™ platform, in addition to Apple™ iOS and Android™ tablets and smartphones, Roku™ Streaming Players, Samsung™ Smart TVs and Xbox 360™ video game consoles, and on PC and Mac computers. TWC TV® features up to 300 linear channels and over 4,000 hours of VOD programming on all TWC TV® app platforms in the home and up to 24 live channels and 1,200 hours of VOD content from 40 networks outside of the home.

Residential Subscribers

                                                           2012
                         --------------------------------------
                             1Q      2Q      3Q      4Q      FY
                         ------  ------  ------  ------  ------
Video                    12,468  12,299  12,159  12,030  
  Net adds                 (94)   (169)   (140)   (129)   (532)

Digital video recorder    5,039   5,075   5,083   5,124  
  Net adds                   92      36       8      41     177
  Penetration             52.2%   52.8%   53.4%   53.9%  

                                                           2013
                         --------------------------------------
                             1Q      2Q      3Q      4Q      FY
                         ------  ------  ------  ------  ------
Video                    11,911  11,720  11,414  11,197
  Net adds                (119)   (191)   (306)   (217)   (833)

Digital video recorder    5,072   4,950   4,756   4,721
  Net adds                 (52)   (122)   (194)    (35)   (403)
  Penetration             53.6%   52.9%   52.2%   52.0%