It was a busy day for Time Warner Cable
So, let's look quickly at the company's results for the quarter before discussing its future. For the period, it earned $242 million, or $0.25 per share, vs. $276 million, or $0.28 per share, in the first quarter of 2007. But to compare like types of fruit, the earlier quarter included a gain from the distribution of Texas and Kansas City Cable Partners, LP's assets, in which Time Warner Cable had a 50% interest. The result was an extra $81 million, or approximately $0.08 a share, for the period. And in the 2008 quarter, the company sold an investment, which generated a whole additional penny. Adjusting for these one-time items turns an earnings drop into an earnings increase.
It now appears that Time Warner
But since investment is inherently a forward-looking exercise, let's crawl out on a proverbial limb and think about what might follow the separation of the two Time Warners. My strong feeling, which I've held for a while now, is that Cablevision
Think about it: Cablevision operates largely in western Connecticut, Westchester County of New York, Long Island, much of non-Manhattan New York City, and parts of northern New Jersey. Time Warner Cable holds most of the Manhattan cable franchise. What a strong hand-in-glove combination the two would make from an operating and marketing perspective!
Let's stay tuned and see how this one plays out. In the meantime, Time Warner Cable's 896,000 revenue-generating units (RGUs) added during the quarter were impressive and should allay some fears about the company's ability to fend off competition from the likes of telcos Verizon
So, Fools, I'm not at all shy about singing the praises of Time Warner Cable. Along with industry leader Comcast
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