Time Warner Cable recently announced its first quarter results. As per the statistics the company’s quarterly profits rose by 30%.
The rise in the profit has come due to high demand of Internet, phone and digital cable-TV by customers. The digital fever has caught up quickly amongst people and with the high quality viewing it gives everyone is going digital. People are switching to digital media like never before. The company added 212,000 residential subscribers and 86,000 home-phone subscribers. They also added 102,000 digital cable-TV customers. The company’s coverage is restricted to Manhattan, Brooklyn, Queens and Staten Island and has managed to get quite decent number of customers which have also added to their profits.
The figures are far more than the company had forecasted. Even though the digital customers are on a rise they are loosing video customers to satellite-TV providers and phone companies that offer video.
The company’s profits rose to $214 million with a rise of 5% to $4.6 billion when compared to past quarter.
The cable company also was profited from the bounce back in advertising sales during the quarter, which rose more than 19% to $173 million. It has also set a target of 15% gain through advertising sales this year.
Time Warner Cable has come out to be the strongest cable stock company with around 40% of the total rally.
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