US second largest cable TV operator Time Warner Cable Inc reported an increase of 3.8 percent in revenue amid buying of more service bundles by the residential customers, causing fewer-than-expected cancellations of video.
The cable TV provider lost a net 38,000 residential customers in the quarter, which is lower than half the 103,000 that market research company StreetAccount had estimated as well as fewer than the 184,000 customers that the company lost previous quarter.
The company, however, reported quarterly revenue and profit below the average estimates of the analysts.
Time Warner Cable’s shares declined marginally at USD 138.63 during the morning trade at the New York Stock Exchange (NYSE) on Wednesday.
The company has been bleeding its customers’ base as more and more users are now switching to internet streaming services offered by rivals like Netflix Inc.
In order to retain its customers, Time Warner is offering a bundle of TV, phone and Internet services on a larger scale.
The company has not released the number of customers who have opted for bundles, but the insiders said that the addition of fixed-line customers clearly indicates adoption of more bundles.
295,000 residential voice customers were added by the company in the quarter in comparison to 1,000 in the same period in 2014.
The analysts had made estimations of adding 30,000 customers in the quarter.
The company’s net income attributable to the common shareholders increased to USD 554 million or USD 1.95 a share from USD 540 million or USD 1.89 a share. The firm earned USD 2.03 a share on an adjusted basis.
The revenue of the company increased to USD 5.79 billion from USD 5.58 billion.