Time Warner's cable system revenues were up 15% for the first quarter of 2006 to $2.6 billion, the company's best-performing sector, despite a 2% decline in ad revenue. Driving the boost was a 16% increase in subscription revenues, including a 24% ($119 million) boost in high-speed data revenues as well as jumps in phone and digital video service revenues and basic cable rate hikes.
Each Time Warner Cable sub is now paying $87 per month on average, which the company says marks the twenty-first consecutive quarter of double-digit growth year-to-year in that figure.
Cable network revenue (TBS Braodcasting, HBO and The WB) was up 3% to $2.4 billion, with subscription and ad revenue both up. Subscriber revenes were up 8% to $108 million due to rate hikes as well as sub boosts at Turner and HBO. Ad revenue was up 3% to $21 million, led by a 6% boost at Turner that partly made up for a 10% drop at the soon-to-be folded WB.
Program fee revenue was down 23% to $58 million thanks in large part to the absence of Everybody Loves Raymond, which ended its CBS run last year.
Filmed entertainment was down 8% to $235 million, including sales drop-offs for DVD's of Friends and Seinfeld and lower sales of theatricals to TV.