Time Warner Cable Broadband Revenues Jump 11% $4.4 billion in revenues, $164 million net profit in Q1 Time Warner Cable issued their first earnings report (pdf) this morning as an independent company, after recently spinning off from Time Warner. According to the company, they added 36,000 basic video, 225,000 new broadband users and 166,000 new VoIP customers on the quarter -- all three higher than most Wall Street estimates. Under a broadband business model the company recently stated was "not viable," broadband revenues increased 11% ($107 million) to $1.1 billion. Time Warner Cable posted a net profit of $164 million, down from $242 million a year ago due to separation costs from Time Warner. Total revenue rose 5% to $4.4 billion. Time Warner Cable CFO Rob Marcus told attendees of a conference call that improving subscriber additions "tailed off in recent weeks," though didn't cite a reason why.
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  DarkLogixPremium
join:2008-10-23
Baytown, TX
kudos:3 |  not viable? really
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|  |  MattAll noise, no signal.Premium
join:2003-07-20
Jamestown, NC
kudos:12 | Re: not viable? really said by DarkLogix:Do they have lead paint in the Time Warner Cable offices? That might explain the poor choices lately Oh heck no. They aren't shy about spending money to upgrade their offices and build new office space. It's that pesky DOCSIS plant that isn't worth as much as a new call center. | |
| | | DarkLogixPremium
join:2008-10-23
Baytown, TX
kudos:3
1 edit | Re: not viable? really In that case maybe they built a heavy duty lead bunker with 10ft thick (you know just incase of a nuke) | |
| | | | | It's a shame. I use to prefer cable technology, but it's become apparent that the cable companies are going to milk their networks even more than the phone companies do.
How can TW resist not billing for usage? They know all well that internet usage is going to continue to climb as video services take hold. They tell you the average (read: single user household) uses 5GB, but what they won't ever tell you how much they average family of 4-6 uses, especially one that relies heavily on the internet for research, gaming, entertainment. With 15-20 IP devices in my house, I think it's a miracle we don't use significantly more than 100GB a month.
It's all about giving less and having your customers pay more. Cut them off at the knees now, just to make your investors happy.
Seriously. Over the last several years we have moved away from usage based billing on long distance phone lines. WTH is this? We're going backwards. We all know costs continue to decline as technology matures. Why don't we use the same un-popular principle and bring back metered phone use, and lets start figuring out a way to bill by the amount of hours TV is consumed in the home as well. It may sound ridiculous, but it really is no different. | |
| | | | MattAll noise, no signal.Premium
join:2003-07-20
Jamestown, NC
kudos:12 | Re: not viable? really said by RR User :
It's a shame. I use to prefer cable technology, but it's become apparent that the cable companies are going to milk their networks even more than the phone companies do. I agree. I was a big fan of cable until my area started running into capacity issues and Time Warner has so far, refused to fix them. I found it rather humorous that the last tech I spoke with tried to blame their capacity problems on the DTV transition delay. After 3 tech visits, 1 no-show tech visit, 2 manager escalations and the recent usage based billing nonsense, I didn't have the energy to correct him -- or even chuckle back at him.
It's sad too, because I know a lot of the behind the scenes techs, sales guys, and executives (who were formerly) in my area. They are sharp as a tack and can't believe they get to support their family with a job they love.
All the problems in my area started after they moved to regional supervision rather than having managers responsible for each area. Once all our executives moved to Charlotte, the Triad area started going to hell in a handbasket. It's sad really. | |
| | | | | DarkLogixPremium
join:2008-10-23
Baytown, TX
kudos:3 | Re: not viable? really Well hopefully the consumer backlash will last and force TW to fix their act
but more likely people will forget and the effect will be short lived | |
| | | | |  en102Canadian, eh?
join:2001-01-26
Valencia, CA | Its a sales pitch.
They've been selling speed (7x faster than DSL  )
Now you're being told that you can't really use it.
Personally I'd be happier with a slower connection that I could make full use of, than a crippled high speed.
Cable: We'll give you a BMW M3, but we've set up GPS and tracking to fine you if you drive more than 40miles/day (daily commute in Los Angeles)
DSL: We'll give you a Chevy Cobalt, speed limited to 65mph, you can drive as much as you want.
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Canada = Hollywood North | |
| | | | | | | I've had RR here since it first came available in 2000 I think it was. It was offered here a good year or so before Bellsouth DSL ever made it here, and even after Bellsouth started marketing me, I was getting 2M/384K while Bellsouth could only guarantee me no more than 1.2M/256K, not to mention DSL was more expensive than RR at the time.
Over the years, Bellsouth really hasn't been much of a threat to the RTP area. TW owns this town and they know it, and they are apparently confident enough now that they won't even bother to upgrade our upload speeds. Aside from our decade old upload speeds, I really have not had any issues with TW, or capacity. 384K upload was fine with 2-3M service, with 5M it felt ancient, with 7 it feels useless, and now with powerboost, it's down right laughable because during a powerboost it must somehow exceed the 384K upstream to handle the upstream ack packets in order to download a file at 30+Mbps. So I see my upstream go up to 500-600K sometimes while downloading a file at 37Mbps.
People in this area are going to flip out if TW brings consumption based billing here. I'm personally getting ready myself to switch to AT&T, but if they follow TW's lead, then there will be few options left. It's unjustified to suddenly ask force someone to start paying 3-4x to continue getting the same service, when even now before CBB TW is seeing increases in profit 11% quarter after quarter, year after year. I guess a reliable 11% is just not enough anymore... let's make it 30%.
Things don't look good. TW is just going to keep pushing until they get everything they want, and the expense of the consumer. I don't see the point of offering super fast broadband if you can't even use it. I could only hope, that if TW does move forward, AT&T, like Verizon's Fios would see the massive advantage it would give them to offer uncapped service. I have no doubt AT&T would start seeing a sizable increase in new customer adds if TW brought 20-40GB caps to my area. AT&T has no reason to cap other than greed as well. They own a massive backbone, so their transport costs are minimal to non-existent. They have beefed up their network (U-verse), and don't generally suffer from the same last mile bottle neck that cable does, other than the limitations of VDSL. | |
| | | | | |  espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
1 edit | Re: not viable? really said by RR User :
It's unjustified to suddenly ask force someone to start paying 3-4x to continue getting the same service, when even now before CBB TW is seeing increases in profit 11% quarter after quarter, year after year. I guess a reliable 11% is just not enough anymore... let's make it 30%. As a point of clarification, it was an 11% increase in annual revenue; their costs also increased, so their profit was not 11%. | |
| | | | | | | Lazlow
join:2006-08-07
Saint Louis, MO | Re: not viable? really espaeth
If you look at their 10K you will see while HSI revenues increased by 11%, their HSI costs of revenues decreased by 12%. So you are correct their profit was not 11%, it was greater than 11%. | |
| | | | | | | | espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| Re: not viable? really said by Lazlow:If you look at their 10K you will see while HSI revenues increased by 11%, their HSI costs of revenues decreased by 12%. So you are correct their profit was not 11%, it was greater than 11%. Direct costs (maintenance, capex for hardware, vendor costs) went down, but again you're not factoring in the other indirect cost line items from the 10-K.
You can't do a 1:1 correlation of product line revenue to product line direct costs. Product line revenue accounts for all income associated with that product, but the direct costs don't reflect the total cost of actually providing the service.
It's like relating the cost of your auto repair bill to just the parts on the invoice, but not factoring in labor costs. | |
| | | | | | | | | Lazlow
join:2006-08-07
Saint Louis, MO | Re: not viable? really espaeth
Total revenues were up 5%. Video revenues were down but HSI revenues were up. Video costs went up 6%, but HSI costs went down 11%. So if video was down, HSI was up, and there was no major upgrades done to the HSI system, where was the majority of increase in the non listed items? Probably in the switch from analog to digital on the video side and the rapid expansion of their VOIP product. | |
| | | | | | | | | | espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| Re: not viable? really said by Lazlow:So if video was down, HSI was up, and there was no major upgrades done to the HSI system, where was the majority of increase in the non listed items? Annual salary increases for employees? Higher cost of healthcare benefits? Higher energy costs? Higher fuel costs for the vehicle fleet? | |
| | | | | | | | | | Lazlow
join:2006-08-07
Saint Louis, MO | Re: not viable? really All of which are there no matter how much an individual downloads. | |
| | | | | | | | | | espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| Re: not viable? really said by Lazlow:All of which are there no matter how much an individual downloads. True, but that's not what we're talking about? (relating 10-K cost values to revenue) | |
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| | | | | | | | The numbers in this article are from 1 quarter, as I read it. If I'm wrong, then I apologize as it would be my mistake. I don't see how those numbers would be annual. TW took in over 4 billion in revenue for RR alone last year. 1.1 Billion would be an epic loss if it was a yearly figure.
Taking in 1.1+billion this quarter would be a about an 11% increase, considering they took in a total of about 4.1 Billion last annual year. This puts them on track to raking in at least 4.4-4.5 billion this year, if they keep their pace moving along, but with all the negative press and pissed off users and epic scare from metered billing... They may not.
I for 1 will drop them in a heartbeat if they bring metered billing here. And would go the extra mile to spread the word around to all my friends and neighbors just to help TW feel the pinch.
It's pretty obvious why new customer additions have trailed off the last few weeks... That's the same time frame TW announced they would start metered billing trials in several different states/markets. I wouldn't be surprised that people in the proposed markets started calling in mass to cancel their services out of fear. That alone is probably what dug into their new sub adds toward the end of the first quarter. I dare TW to bring metered billing to even more markets, and watch their subs start dropping like flies. If they are clueless to what is so apparent here, they are completely inept. | |
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| | | | | said by RR User :
It's a shame. I use to prefer cable technology, but it's become apparent that the cable companies are going to milk their networks even more than the phone companies do. Oh, I could not agree more. So true.
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| | Reviews:
 ·WOW Internet and..
| Why do they need a new call center? calls now are being directed to former Adeplhia networks in any part of the Country. I called TWC Mid Ohio the other day for my aunt and my call was directed to PA and then to NY. No where NEAR the call centers they use around here. | |
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| | |  Anonymous_AnonymousPremium
join:2004-06-21
127.0.0.1
kudos:2
1 edit | i want all i can eat
April 2009 (Incoming: 251072 MB / Outgoing: 135098 MB) | |
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| | Reviews:
 ·SureWest Internet
·AT&T Yahoo
·Comcast
| Re: And they want to add more to that profit.... Metering is a pain, it is a nightware for all broadband user
user who didn't use much are not paying less
Those who use less don't mind paying a premium so those that use more don't pay more
Its pretty fair
Like a 10,15,or 20 dollars buffet
Depending on your tier, the more you pay the bigger your dish so you can hold more and eat more in a shorter period
No one was complaining about unlimited
Only few are asking for cheaper tier like 24.95 at 768kbps and they were happy about that
metering is something that was done in other countries like canada,australia,china,taiwan because the provider are greedy and oversell their bandwidth at 1000 percent market price
WTF is wrong with timewarner executive? on drugs? fall on the wrong side of the bed every morning? | |
| | | espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| Re: And they want to add more to that profit.... said by jadebangle:Those who use less don't mind paying a premium so those that use more don't pay more Its pretty fair The same way that those employees taking pay cuts to save their company don't mind that a few execs are taking big bonuses? | |
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| | | Why can't they just have some basic common sense??? They need to follow Comcast's lead, and just go after the abusers, not let everyone else suffer. After reading about their high earnings, it just pisses me off even more. GREED GREED GREED. Oh, it will eventually bite them in the ass. What goes around comes around. | |
| | | | | | | | | | | | | Re: And they want to add more to that profit.... LOL Yea, that's a good one, huh! Seriously, I know businesses are in the business to make money, but there is a fine line, and TW has really crossed it. Consumers are what keep these corporations running. The corporations then have an obligation to satisfy both the consumers and share holders, but without going overboard in either direction. | |
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| | Profit Doesn't TW turning a profit in a big way mean that they actually DO NOT need to gouge their customers with low caps and overage penalties?
Just an observation. | |
| | elray
join:2000-12-16
Santa Monica, CA Reviews:
·SONIC.NET
·RoadRunner Cable
| Re: Profit said by axiomatic:Doesn't TW turning a profit in a big way mean that they actually DO NOT need to gouge their customers with low caps and overage penalties? An 11% quarterly bump is hardly "turning a profit in a big way". And rest assured, they won't be profitable if they "gouge their customers with low caps and overage penalties".
DSLR has been headlining massive defections of landline customers and cable signups for the past 18 months, thanks to triple-pay discounts and general dissatisfaction with traditional telcos. That trend can easily be reversed, if telco, with deeper pockets, wants to ante up. | |
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| | Maybe... once they realize that being a customer is also a form of investment, they'll treat their customers better. (In reality, though, only actual competition will convince them to view their customer base as a partnership.) | |
| | me1212
join:2008-11-20
Pleasant Hill, MO | Re: Maybe... Maybe FTTH will help with that. | |
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| | hmmm This is just reason #9999999 to why any talks of caps should be stopped. Not even the 250 gig cap--just not justified plain and simple | |
| | | BOTTOM LINE TIME WARNER IS SHOWING PROFIT for the simple facts of It is getting grants and money from the Government for projects (that is Fact) and its just sitting on the money "probibly letting it gain interest first" (not fact but likely)... What is fact? They are now Outsourcing there EMAIL AND CHAT support which use to be in Coudersport, PA (former Adelphia) and Buffalo, NY (former Adelphia also) and then to Canada Now to India. But hey its ok for an American Company to make MILLIONS from US consumers and Outsource to India. Someone doesn't stop this, you'll be calling tech support in India next. Look at the US banks we have bailed out that are applying for Visa's for Foreign employment. OUR MONEY BAILED THEM OUT no India's or anyone elses but yeah send our jobs somewhere else and we will pay for it, not the US companies. US. but there just protecting share holders. WRONG, they are making sure there Pockets get fatter by the day.
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I am the Coyote | |
| |  maartenaElmoPremium
join:2002-05-10
Orange, CA
kudos:1
 ·AT&T U-Verse
 ·DIRECTV
| Re: BOTTOM LINE Not only are they showing a profit, they are showing a profit in the WORST economic crisis since the great depression in the 30ties. A big portion of fortune 500 companies are showing record losses, job cuts by the tens of thousands, and TWC is showing a profit, and hasn't laid anyone off. (Or maybe a few hundred at most to "trim the fat")
In a time you would expect companies like TWC to show a loss, they are still making a profit.
I totally understand upgrades cost money, and I totally understand that there are individuals who cross the line of sanity and torrent 24/7 into the terabyte range.... but capping everyone off at 40 Gb is total insanity itself, where the 250 Gb softcap that Comcast implemented is at least acceptable. | |
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 Romney2012Defeat Obama 2012-Chg we can believe inPremium
join:2002-03-03
USA
kudos:4 |  TW spins off AOL today
»tech.yahoo.com/news/afp/20090429···mewarner
Time Warner announced plans on Wednesday, in documents submitted to the Securites and Exchange Commission (SEC), to spin off troubled Internet unit AOL.
Time Warner has raised the prospects of spinning off AOL on previous occasions and chairman and chief executive Jeff Bewkes said Wednesday the company was "working to determine the right ownership structure for AOL."
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My BLOG .. .. Internet News .. .. My Web Page | |
| | | | Re: TW spins off AOL today It's about time. The TW/AOL merger was an incredible failure.
Time Warner Cable is a profitable business but it wasn't helping that TWC's profit was being put back into the parent company Time Warner to help offset losses since TW and AOL merged. Now that TW has spun off TWC and is looking to sell AOL everyone should be much better off. TWC should be able to focus on their core (and most profitable) business. And hopefully, they'll forget about this CBB nonsense. | |
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| | Oh Cablevision How many ways do I love thee? | |
| | | Money MONEY MONEY MONEY give me money , lots a peoples money ( sing with me) give me money money money money..... | |
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