Time Warner Cable 2007 Annual Report Download - page 2

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Dear Time Warner Cable Shareholders,
Employees and Communities:
I am extremely proud of Time Warner Cable’s
accomplishments in 2007, our first year as a public
company. Despite more competition than ever and
growing economic uncertainty, the company produced
excellent financial and operational results. I believe Time
Warner Cable is well positioned for 2008 and beyond,
and I am excited about our prospects.
2007 highlights
We believe our 2007 financial performance, detailed in
the enclosed Annual Report on Form 10-K, was excellent
in light of the challenges of integrating newly acquired
cable systems. Time Warner Cable closed major
transactions in mid-2006, expanding our footprint by
adding a number of systems formerly operated by
Adelphia Communications Corporation and swapping
certain systems with Comcast Corporation to enhance
our clusters of operations.
During 2007, we faced the challenge of integrating and
upgrading the acquired systems, requiring us to undertake
a number of actions that were disruptive to customer
service. As we anticipated, those actions affected our
financial and operational performance, particularly in Los
Angeles and Dallas. However, by the end of 2007, these
activities were largely behind us, and we were able to
actively sell our video, high-speed data and voice bundle,
or “triple play,” in the newly acquired systems. The early
results have been very promising. For example, Los
Angeles led the company’s divisions in several key
subscriber growth metrics in the fourth quarter of 2007.
In addition to integrating the newly acquired systems, we
made significant progress in other areas of our business in
2007. Digital cable, digital video recorders and Video On
Demand continue to be very popular with our video
A M e s s a g e F r o m t h e P r e s i d e n t & C E O
President & Chief Executive Officer Glenn Britt is pictured
with the three Emmy® Awards Time Warner Cable has
earned for technological innovation: Video On Demand
(2008), Start Over (2005) and fiber-optic deployment (1994).