NEW YORK — Time Warner Cable Inc. on Thursday reported its profit dropped in the fourth quarter as higher costs outpaced a boost in revenue.
The cable company, which is being bought by Charter Communications Inc. for about $55 billion, added 200,000 residential subscribers during the quarter. A portion of the higher costs are related to the deal.
The company's profit fell 12 percent to $486 million, or $1.70 per share. Earnings, adjusted for costs related to mergers and acquisitions, came to $1.80 per share.
The results beat Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.79 per share.
Revenue rose 5 percent to $6.07 billion in the period on growth in residential services. Ten analysts surveyed by Zacks expected $6.03 billion.
Costs and expenses rose 8.4 percent to $4.95 billion.
For the year, the company reported profit of $1.84 billion, or $6.44 per share. Revenue was reported as $23.7 billion.
Time Warner Cable shares have fallen slightly more than 5 percent since the beginning of the year, while the Standard & Poor's 500 index has declined nearly 8 percent. The stock has climbed 22 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TWC at http://www.zacks.com/ap/TWC
Keywords: Time Warner Cable, Earnings Report