Time Warner Inc. Reports Third Quarter 2007 Results

NEW YORK — Time Warner Inc. (NYSE:TWX) today reported financial results for its third quarter ended September 30, 2007.

CABLE (Time Warner Cable) – Highlights

For the presentation of subscriber information, the systems that Time Warner Cable acquired in the Adelphia/Comcast Transactions, which served approximately 3.7 million basic video subscribers at September 30, 2007, are referred to as the “Acquired Systems.” Those systems that Time Warner Cable owned both before and after the Adelphia/Comcast Transactions as well as the Kansas City Pool, which together served approximately 9.6 million basic video subscribers at September 30, 2007, are referred to as the “Legacy Systems.”

As of September 30, 2007, Time Warner Cable served approximately 13.3 million basic video subscribers.

During the quarter, Time Warner Cable had a net increase of 522,000 revenue generating units (“RGUs”). Total RGUs were 31.5 million at September 30, 2007.

At September 30, 2007, nearly 6.9 million customers (47% of Time Warner Cable’s 14.6 million customer relationships) subscribed to two or more of Time Warner Cable’s primary services (video, high-speed data and voice), representing a net addition of 213,000 during the quarter. Triple play subscribers totaled 2.1 million at the end of the third quarter (15% of Time Warner Cable’s customer relationships), due to 220,000 net additions, a quarterly record.

Basic video subscribers decreased a net 83,000 during the quarter, with net reductions of 11,000 basic video subscribers in the Legacy Systems and 72,000 in the Acquired Systems.

Digital video subscribers totaled 7.9 million at the end of the quarter, representing a 59% penetration of basic video customers. Digital video net additions reached 128,000 during the quarter. The Legacy Systems grew by 106,000 net additions during the third quarter, and the Acquired Systems grew by 22,000 net additions.

At September 30, 2007, Time Warner Cable had 7.4 million residential high-speed data subscribers, reflecting a 28% penetration of service-ready homes passed. Residential high-speed data net additions totaled 224,000 during the quarter. The Legacy Systems contributed net additions of 164,000 residential high-speed data subscribers, while the Acquired Systems contributed net additions of 60,000.

Digital Phone subscribers at the end of the quarter were 2.6 million, representing an 11% penetration of service-ready homes passed. Digital Phone net additions were 275,000 during the third quarter, marking the largest quarterly gain ever. The Legacy Systems grew by 156,000 net additions during the quarter, and the Acquired Systems grew by 119,000.