The financials are probably just anemic enough to help Time Warner Cable‘s case that it has to hold the line on rising programming costs, but without sending investors running. The No. 2 cable company generated $481M in net income in Q2, +6.4% vs the period last year, on revenues of $5.55B, +2.7%. Analysts expected revenues to be a tad higher, at $5.58B. But adjusted earnings at $1.69 a share beat the consensus forecast for $1.65. The core residential video business weighed down the numbers: TWC ended the quarter with 11.7M video subs, down 191,000 vs the previous quarter. Revenues for the unit fell 4.4% to $2.67B. Meanwhile the average monthly programming costs per sub increased 8.5% from the period last year to $33.54. That was largely driven by network rate increases and the addition of new networks, the company says. (It’s engaged in a bitter negotiation with CBS which wants TWC to pay higher prices for its stations and cable networks.) As with most cable companies, the high-speed Internet business helped to pick up the slack. Revenues for the residential service rose 12.5% to $1.42B as TWC raised the price of equipment rentals and added 8,000 subscribers for a total of 11.1M. With advancements in its business services, CEO Glenn Britt says that he is “pleased with our progress in operations and expect to see the benefits in the second half of the year and in 2014.”
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