Time Warner Cable 2007 Annual Report Download - page 58

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2007 vs. 2006
As previously noted under “Recent Developments,” on July 31, 2006, the Company completed the
Transactions and began consolidating the results of the Acquired Systems. Additionally, on January 1, 2007,
the Company began consolidating the results of the Kansas City Pool. Accordingly, the operating results for 2007
include the results for the Legacy Systems, the Acquired Systems and the Kansas City Pool for the full twelve-
month period, and the operating results for 2006 include the results of the Legacy Systems for the full twelve-month
period and the Acquired Systems for only the five months following the closing of the Transactions and do not
include the consolidation of the results of the Kansas City Pool. The impact of the incremental seven months of
revenues and expenses of the Acquired Systems on the results for 2007 is referred to as the “impact of the Acquired
Systems” in this report.
Revenues. Revenues by major category were as follows (in millions):
2007 2006 % Change
Years Ended December 31,
Subscription:
Video . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,165 $ 7,632 33%
High-speed data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,730 2,756 35%
Voice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,193 715 67%
Total Subscription . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,088 11,103 36%
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 867 664 31%
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,955 $11,767 36%
Revenues by major category for the Legacy Systems, the Acquired Systems, the Kansas City Pool and the total
systems were as follows (in millions):
Legacy
Systems
Acquired
Systems
Kansas
City Pool
Total
Systems
Legacy
Systems
Acquired
Systems
(a)
Total
Systems
Year Ended December 31, 2007 Year Ended December 31, 2006
Subscription:
Video . . . . . . . . . . . . . . . . . . . . . . . $ 6,830 $2,788 $547 $10,165 $ 6,467 $1,165 $ 7,632
High-speed data. . . . . . . . . . . . . . . . 2,692 835 203 3,730 2,435 321 2,756
Voice . . . . . . . . . . . . . . . . . . . . . . . 1,011 97 85 1,193 687 28 715
Total Subscription . . . . . . . . . . . . . . . . 10,533 3,720 835 15,088 9,589 1,514 11,103
Advertising. . . . . . . . . . . . . . . . . . . . . 539 286 42 867 527 137 664
Total . . . . . . . . . . . . . . . . . . . . . . . . . $11,072 $4,006 $877 $15,955 $10,116 $1,651 $11,767
(a)
Amounts reflect revenues for the Acquired Systems for the five months following the closing of the Transactions.
53
TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)