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Cable Bubble Differs From Telecom Bubble Issue Of Market Needs.(A)
Byline: REINHARDT KRAUSE
It's no secret that AOL Time Warner Inc. has its share of woes.
But it's not Time Warner Cable that's causing the corporate migraines.
Boosted by new services, the nation's second biggest cable TV operator behind AT&T Comcast Corp. saw revenue rise 14% to $1.8 billion in the third quarter. Earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 11% to $680 million. It's a key measure in this industry.
Like all other cable system operators, Time Warner is battling tough competition from satellite TV broadcasters EchoStar Communications and DirecTV, a unit of Hughes Electronics Corp.
Glenn Britt, Time Warner Cable CEO, talks about the industry's challenges in this interview with IBD.
IBD: One put-down of cable firms is that they've piled up too much debt in upgrading their networks. Will those upgrades pay off?
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