Time Warner Cable (TWC) (NYSE:TWC) said Thursday its profits in the fourth quarter rose over 40 percent, as the company's video subscriber losses were offset by broadband gains.
The company has been increasing its focus on its broadband and telephone services, as more customers opt for internet videos, instead of television.
During the quarter, TWC lost 129,000 video subscribers, dropping its total subscriber count to 11.89 million for video.
However, it added 117,000 internet subscribers and 37,000 voice subscribers during the quarter, bringing those totals to 9.95 million and 4.54 million, respectively.
Net earnings during the quarter rose 43.9 percent to $654 million, or $1.75 per share, up from $392 million, or $1.09 per share, a year ago.
Revenues rose to $4.99 billion, up four percent from $4.80 billion in the same period last year.
According to Thomson Reuters, analysts had anticipated $1.20 per share in profits during the quarter, on $4.97 billion in sales.
"Time Warner Cable’s 2011 results demonstrate the continued strength of our business amidst rapid change in technology and the consumer marketplace," said CEO Glenn Britt.
"We have a full slate of strategic and operational initiatives planned for the year ahead, all designed to generate strong cash flow, enable future growth and provide attractive returns to our shareholders."
Residential services revenues rose 2.6 percent to $4.3 billion, largely on internet and voice sales. Internet revenues rose on increases in subscribers, prices, and average revenue per user (ARPU).
Voice revenues, meanwhile, were helped by more subscribers, partially offset by a decline in ARPU.
Video revenues were flat, as price increases were offset by a decline in subscribers.
Revenues from the company's business services unit increased 37.2 percent to $409 million, mainly due to growth in internet and voice subscribers, and revenues from NaviSite, which it acquired in the second quarter of 2011.
Advertising revenues decreased 10 percent to $242 million, as political advertising fell over 88 percent to just $5 million.
For the full year fiscal 2011, TWC posted earnings of $1.67 billion, or $4.97 per share, up 27.3 percent, while revenues rose 4.3 percent to $19.68 billion.
The company also announced that its board of directors has approved a $4 billion share repurchase plan, effective today, as well as a 17 percent hike to its quarterly dividend.
The dividend will rise to $0.56 per share, or $2.24 per share on an annualized basis, and is payable in cash to shareholders on March 15.
Britt added: "Today’s announcement is yet another signal of our confidence in our business. It reinforces our focus on returning capital to our shareholders while we continue to invest in the long-term growth of our business."
In New York, TWC shares hiked 7.32 percent to $74.17, as of 10:27 am EDT.