Time Warner Cable Inc. (TWC) reported its third quarter results today. Total revenues of $4.5 billion marked a 4% year-over-year improvement and were in line with the Zacks Consensus Estimate. This solid performance was the result of the continued growth in Subscription revenue partially offset by a decline in Advertising revenue. Quarterly GAAP net income was $268 million or 76 cents per share compared to $301 million or 92 cents per share in the prior-year quarter. However, third-quarter EPS of 76 cents was exactly the same to that of Zacks Consensus Estimate.
 
Adjusted operating income before depreciation and amortization was $1.6 billion, up 4% year over year. This was primarily due to healthy growth in Digital Video, High-speed Data and Digital Phone revenue offset by higher video programming, employee and voice costs. Quarterly video programming expense was $1 billion, (up 6% year over year), Employee Cost was $911 million (up 4% year over year), and voice cost was $161 million (up 12% year over year). Quarterly GAAP operating income was $828 million, up 5% compared to the year-ago quarter.
 
During the reported quarter, Time Warner Cable generated $1,234 million of cash from operations, down 7% compare to the prior-year quarter. However, quarterly free cash flow (cash flow from operations less capital expenditure together with principal payment for capital lease and intangible assets) was $465 million, up 4% year over year. At the end of the third quarter, the company had $506 million of cash & cash equivalents and $22.2 billion of outstanding debt on its balance sheet compared to $5.5 billion of cash & cash equivalents and $17.7 billion of outstanding debt at the end of the previous year.
 
Subscription Segment
 
Total Subscription revenues in the third quarter were $4,316 million, up 5% year over year. Within this segment, Video revenues were $2,698 million (up 2% year over year), High-speed Data revenues was $1,138 million (up 8% year over year), and Voice revenues were $480 million (up 14% year over year).
 
Advertising Segment
 
Quarterly revenues stood at $182 million, down 19% year over year.
 
Subscriber Statistics
 
During the third quarter, Time Warner Cable added 8,000 Digital Video subscribers to 8.81 million. The company lost 84,000 Basic Video subscribers to 12,964 million, added 117,000 Residential high-speed data subscribers to 8.874 million, added 4,000 Commercial high-speed data subscribers to 0.293 million, added 62,000 Residential Digital phone subscribers to 4.078 million, and also added 10,000 Commercial Digital phone subscribers to 0.058 million. During the same quarter the company added 49,000 Triple play subscribers to 3.384 million, added 39,000 Double play subscribers to 4.873 million, and lost 113,000 Single play subscribers to 6.37 million.
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