Time Warner Cable 2009 Annual Report Download - page 49

Reclassifications
Certain reclassifications have been made to the prior years’ financial information to conform to the December 31, 2009 presentation.
Recent Accounting Standards
See Note 2 to the accompanying consolidated financial statements for other accounting standards adopted in 2009 and accounting
standards not yet adopted.
RESULTS OF OPERATIONS
2009 vs. 2008
The following discussion provides an analysis of the Company’s results of operations and should be read in conjunction with the
accompanying consolidated financial statements and notes thereto.
Revenues. Revenues by major category were as follows (in millions):
2009 2008 % Change
Year Ended December 31,
Subscription:
Video ................................................................ $ 10,760 $ 10,524 2.2%
High-speed data ......................................................... 4,520 4,159 8.7%
Voice................................................................. 1,886 1,619 16.5%
Total Subscription ......................................................... 17,166 16,302 5.3%
Advertising .............................................................. 702 898 (21.8%)
Total ................................................................... $ 17,868 $ 17,200 3.9%
Selected subscriber-related statistics were as follows (in thousands):
2009 2008 % Change
December 31,
Video
(a)
................................................................. 12,859 13,069 (1.6%)
Residential high-speed data
(b)(c)
............................................... 8,994 8,444 6.5%
Commercial high-speed data
(b)(c)(d)
............................................. 295 283 4.2%
Residential Digital Phone
(c)(e)
................................................ 4,153 3,747 10.8%
Commercial Digital Phone
(c)(e)
................................................ 67 30 123.3%
Primary service units
(f)
..................................................... 26,368 25,573 3.1%
Digital video
(g)
........................................................... 8,866 8,627 2.8%
Revenue generating units
(h)
.................................................. 35,234 34,200 3.0%
Customer relationships
(i)
.................................................... 14,572 14,582 (0.1%)
Double play
(j)
............................................................ 4,900 4,794 2.2%
Triple play
(k)
............................................................. 3,448 3,099 11.3%
(a)
Video subscriber numbers reflect billable subscribers who receive at least BST video programming.
(b)
High-speed data subscriber numbers reflect billable subscribers who receive TWC’s Road Runner high-speed data service or any of the other high-speed data services
offered by TWC.
(c)
The determination of whether a high-speed data or Digital Phone subscriber is categorized as commercial or residential is generally based upon the type of service
provided to that subscriber. For example, if TWC provides a commercial service, the subscriber is classified as commercial.
(d)
During 2009, the Company recorded an adjustment that reduced commercial high-speed data subscribers by 3,000 subscribers, which is reflected in the Company’s
subscriber numbers as of December 31, 2009.
(e)
Digital Phone subscriber numbers reflect billable subscribers who receive an IP-based telephony service.
(f)
Primary service unit numbers represent the total of all video, high-speed data and voice subscribers.
(g)
Digital video subscriber numbers reflect billable video subscribers who receive any level of video service as digital signals.
(h)
Revenue generating unit numbers represent the total of all video, digital video, high-speed data and voice subscribers.
(i)
Customer relationships represent the number of subscribers who receive at least one of the Company’s primary services. For example, a subscriber who purchases only
high-speed data service and no video service will count as one customer relationship, and a subscriber who purchases both video and high-speed data services will also
count as only one customer relationship.
(j)
Double play subscriber numbers reflect customers who subscribe to two of the Company’s primary services.
(k)
Triple play subscriber numbers reflect customers who subscribe to all three of the Company’s primary services.
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TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)