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1Time Warner Cable 2011 Annual Report
GLENN A. BRITT
CHAIRMAN &
CEO
Dear Shareholders,
I am pleased to report that
Time Warner Cable had a good
year in 2011, despite intense
competition and a continued
weak economy. We rolled
out more than two dozen
new products and features,
enhanced our existing
o erings and marketing
capabilities, and took steps
to expand our footprint and
make our company more
competitive. As a result of our
achievements during the year,
we were able to reinvest in
the business and still return a
signiicant amount of capital
to you, our shareholders.
FINANCIAL AND OPERATIONAL
PERFORMANCE
Notwithstanding the external
factors that continue to
challenge us, our company
posted good inancial results
in 2011:
• Revenues increased 4.3%
over 2010 to $19.7 billion.
• Business Services revenues
grew an impressive 32.7%
to $1.5 billion.
• Advertising revenues
matched 2010 levels,
despite not having the
beneit of election-year
political spending.
• Operating income increased
10.3% to $4.1 billion,
driven by rigorous cost
management—even as we
invested in new growth
opportunities.
• Diluted earnings per share
grew 36.5% to $4.97.
• We returned $3.3 billion
to shareholders through
dividends and share
repurchases.
Primary service units
(PSUs)—total video, high-speed
data and voice subscribers—
grew to 27.1 million. Combined
double and triple play net
additions grew year over
year, as well. At the end of
2011, more than 60% of our
customers subscribed to a
bundle of at least two of
our services.
STRENGTHENING AND
EVOLVING OUR SERVICES
Our business is very
dynamic, and the appetite
of consumers is continually
evolving. We understand
the need to evolve with our
customers and drive changes
in the business that will
make us stronger and more
competitive. To successfully
navigate this ever-changing
environment, in 2011 we
focused on developing and
implementing both near- and
longer-term growth strategies
and enhancing the underlying
strength of our services.