Time Warner Cable (NYSE:TWX) has reported yet again that it has lost cable subscribers. This has been the trend for many cable companies as its younger customer base persists in cutting the cord and signing up for online streaming services like Netflix or Hulu.
The New York-based company announced Thursday that it lost 38,000 residential video subscribers in the three months ended in December. However, its overall subscribers, including high-speed Internet data clients, grew by 67,000 in the fourth quarters.
As of Dec. 31, Time Warner maintains 10.8 million household video subscribers, which is down from 11.1 million from the previous year.
“Our fourth quarter marked a strong finish to a really positive year for Time Warner Cable,” said Rob Marcus, Chairman and CEO of Time Warner, in a statement. “As a result of record Q4 subscriber net adds and the investments we made all year in our plant, products and customer care, we enter 2015 with tremendous operating momentum.”
Moving forward, one analyst of Time Warner is depending upon its high-speed Internet to attract customers, especially the millennial demographic, as a growing number of consumers are seeking out web alternatives to satisfy their television viewing appetites.
The second largest cable operator in the United States reported earnings of $1.95 per share on revenues of $5.79 billion. This is up from last year’s $1.89 per share on $5.57 billion earnings, but it is below the initial expectations of Wall Street analysts’ $2.08 per share and $5.81 billion in revenues.
During the pre-market trading session, Time Warner shares dipped by 1.75 percent to $78.89 per share.
It is scheduled that Time Warner will merge with Comcast in a major $45 billion deal that would see the two of the biggest cable providers in the U.S. become one. However, the deal has been placed under intense regulatory scrutiny because of worries about their Internet broadband products.
Netflix, meanwhile, added more than four million subscribers in the fourth quarter and posted a 26 percent gain in revenues. In total, the Internet streaming service maintains a global userbase of 57.4 million.
