Time Warner Inc. (NYSE:TWX) 2nd quarter earning increased by 23%,as it generated revenues by providing services and higher revenue from residential users despite of losing its subscribers to cable TV service.
Like other cable companies, the company worked on its Web-based video service to provide its customers a better and compete assess to the Internet so that they can watch movies and television shows of high digital quality.
Cable TV providers have been losing its subscribers to satellite TV companies and phone-company TV services for years. But for the first time the overall pay-TV industry lost its customers in the 2nd quarter of 2010
The company earned a net income of $420 million, or $1.24 per share, during the quarter ending on 30th June, which was more in comparison of $342 million, or 95 cents per share, earned in the previous year. Earnings of the company went up by a gain of 4 cents per share.
The company’s Revenue went up by 4% to $4.94 billion from $4.73 billion.
According to FactSet ,Analysts expected an average earnings of $1.16 per share on revenue of $4.94 million.
The revenue of the company from advertising went up by 4% to $225 million. However Revenue earned by providing residential services went up by 3% to $4.3 billion. Revenue of the company from Business services went up by 35 % to $361 million.
The company had around 67,000 residential and business high-speed Internet subscribers and 45,000 voice subscribers in the latest quarter, which was much less than the analysts’ expectations.
The company had announced a $4 billion stock buyback during the end of last year. Nomura Equity Research analyst Mike McCormack estimated that about $1.8 billion authorization of the company were pending. The company bought back about $863 million shares during the second quarter.
The company Share value fell $2.88, or 3.7%, to $74.22 in midday trading. However its stock traded in the 52-week at a range of $50.41 and $80.86.
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