Time Warner Inc (NYSE:TWX) saw the largest increase in its video subscribers in six years during the 1Q. The earnings of the company however missed the estimates of the Wall Street.
Time Warner reported earnings of $1.65 per share and revenue of $5.79 billion. The revenue grew by 3.5% from the same period a year back. The analysts had expected earnings of $1.87 per share and revenue of $5.82 billion. The net income of the company fell 4.4% from $479 million in 2014.
The results come less than a week after Comcast Corporation (NASDAQ:CMCSA) gave up on its attempt to acquire the company. There are no reports of a possible merger between Time Warner and Charter Communication.
During the period January-March. Time Warner added 30,000 residential video customers. This was the company’s first positive video addition since 2009. The company also added 315,000 residential high speed data customers. The figures were higher than expected by analysts. The total subscribers to Time Warner number 14.7 million.
According to the Time Warner’s CEO Rob Marcus, the Q1 of the year 2015 was the best subscriber quarter ever for the company. He added that the company had made investments to make the user’s experience better and improve the operational performance., The company according to Mr. Marcus is in far better condition than it was just five quarters ago.
The shares of Time Warner Inc (NYSE:TWX) have risen 4% this year and 12% in the last one year. The company is expected to fend off potential buyers and enjoy the benefits of its newfound growth.
The most important take away from the report is the increase in broadband subscribers of the company. The gain in video subscribers was a relatively smaller one compared to the growth in broadband subscribers.
The growth, however is remarkable and the turnaround extraordinary.
