Time Warner Cable video subscribers down 38,000 in 4Q 2014

Residential video net declines of 38,000

NEW YORK — Time Warner Cable Inc. (NYSE:TWC) today reported financial results for its fourth quarter and full year ended December 31, 2014.

Residential video revenue decreased primarily due to a year-over-year decline in video subscribers, partially offset by an increase in average revenue per subscriber. The increase in average revenue per subscriber was primarily the result of price increases and higher 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), partially offset by lower transactional video-on-demand revenue.

Residential Subscribers

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

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

                                                           2014
                         --------------------------------------
                             1Q      2Q      3Q      4Q      FY
                         ------  ------  ------  ------  ------
Video                    11,163  11,011  10,827  10,789  10,789
  Net adds                 (34)   (152)   (184)    (38)   (408)

Digital video recorder    4,722   4,674   4,551   4,505   4,505
  Net adds                    1    (48)   (123)    (46)   (216)
  Penetration             52.1%   51.5%   50.8%   50.2%   50.2%