TWX Earnings

Time Warner reported 1Q profits more than doubled, fueled in large part by growth in its cable division and the healthy performance of its networks. On an earnings call, media and info div chmn Don Logan talked up VoIP, saying it will be available in almost all markets by year’s end, but cautioning "this is not the year to sign up a lot of customers." HSD revenue climbed 32%, or $100mln, on a sub uptick of 193K, for a total of 4.3mln. TW Cable added 137K digisubs, bringing the total to 4.5mln. Of those, 458K opted for DVR, while 1.2mln signed for SVOD. On the network side, subscription revenue was up 11%, thanks to Tony Soprano, Larry David and Carrie Bradshaw, as well as higher sub rates at Turner. Ad revenue increased 12% (Turner nets were up 14%), while programming expenses were down 3%. The company as a whole posted a net profit of $961mln, up from $396mln a year earlier. — Time Warner shares rose as much as 66 cents to $17.17 in extended trading, following the official release of the company’s results. As with Comcast [MGM] earlier in the day, analysts buzzed that Time Warner may pursue either MGM or Adelphia.