Time Warner Cable to Buy Back Shares
Time Warner Cable Inc. (NYSE:TWC) said it would buy back $4 billion of shares following fourth-quarter profit reports that surpassed analysts’ estimates on added broadband subscriptions. Net income increased to $564 million from $392 million last year. Apart from one-time items, earnings grew $1.39 a share from 99 cents a share. The average estimate of analysts’ was $1.20.
Time Warner Cable is pushing its broadband business in hopes to gain new Internet users and make up for loosing video subscribers. High-speed data customers grew by 130,000. The average estimate of analysts was 96,000. Sales were up 4 percent to $4.99 billion with the average estimate being $4.97 billion.
“At this point for Time Warner Cable, broadband is the main story and video is secondary,” said Paul Sweeney, an analyst at Bloomberg Industries, before the numbers were released.