What to Expect for Time Warner Cable’s Video Customers in 1Q16



Time Warner Cable’s net video additions in 1Q16

In the previous part of the series, we looked at expectations for Time Warner Cable’s (TWC) high-speed data customers in 1Q16. Now let’s look at expectations for the company’s video customers. Wall Street analysts expect Time Warner Cable’s net video customer acquisitions to remain in the green during the quarter. However, they expect the company’s net video additions to continue to shrink YoY (year-over-year) during the quarter.

As we can see in the above graph and according to Wall Street analysts, TWC’s video net additions should decline ~45.4% YoY to ~0.02 million in 1Q16. Earlier in 4Q15, this metric was ~0.06 million.

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Video customers of some of the top US cable players in 4Q15

Let’s look now at growth in the video customer base of the some of the top cable players in the United States in 4Q15. At the end of the quarter, Comcast (CMCSA) (CMCSK) had ~22.3 million video customers. This customer metric declined by ~0.2% YoY.

Time Warner’s video customers grew ~0.4% YoY to reach ~11 million at the end of 2015. In the case of Charter Communications (CHTR), this customer metric rose ~0.2% YoY to reach ~4.4 million by the end of the same quarter.

For a diversified exposure to some of the largest cable players in the United States, you may consider investing in the Consumer Discretionary Select Sector SPDR ETF (XLY). The ETF held a total of ~9.2% in Comcast (CMCSA), Time Warner Cable (TWC), and Cablevision (CVC) at the end of March 2016.


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