Time Warner Telecom Reports Widening 3Q Loss

Communications Today, Nov 4, 2002

Competitive local exchange carrier Time Warner Telecom [TWTC] posted a third-quarter loss of $48.4 million, or 42 cents a share, compared with a loss of $24.3 million, or 21 cents a share, in the July-September period a year ago. Analysts had projected the company post an average loss of 35 cents a share, according to research firm Thomson First Call. The company blamed the wider net loss on higher depreciation and amortization expenses related to its market expansion in 2001. Revenues for the quarter fell 3 percent to $167.2 million, but data and Internet sales increased 51 percent to $23.4 million. TWT expects capital expenditures for this year to be less than $150 million. This past week, Time Warner Telecom signed off on a new credit agreement that relaxed some financial requirements and reduced the credit pact's worth to $800 million from $1 billion.

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