(RTTNews) - Time Warner Cable Inc. (TWC: News ) reported Thursday a 11% fall in profit for the third quarter, hurt by higher interest expense, despite a 4% growth in revenues. Quarterly earnings per share for the second-largest cable operator in the U.S., however, topped market projections, with top line also beating Street view.

New York -based Time Warner Cable, which was formerly a subsidiary of media and entertainment giant Time Warner Inc. (TWX: News ), reported that third-quarter net income attributable to the company was $268 million, compared to profit $301 million last year. On a per share basis, earnings fell 17% to $0.76 from $0.92 a year ago. The company's prior year's per share results were recast to reflect the reverse stock split of all outstanding and treasury shares of TWC Common Stock at a 1-for-3 ratio on March 12, 2009.

On average, 19 analysts polled by Thomson Reuters expected earnings per share of $0.75 for the quarter. Analysts' estimate typically exclude special items.

Time Warner Cable attributed the decline in net income primarily to higher interest expense related to the debt incurred to fund its $10.9 billion special cash dividend paid in March 2009, partly offset by higher operating income and lower net income attributable to non-controlling interests and income tax expense.

Quarterly total revenues rose to $4.50 billion from $4.34 billion a year earlier, and beat sixteen Wall Street analysts' consensus estimate of $4.47 billion.

Subscription revenues grew 5% to $4.32 billion from $4.12 billion a year ago, reflecting video price increases and continued growth in digital video, high-speed data and Digital Phone subscribers. These were partially offset by lower basic video subscribers.

In the segment, video revenues rose 2% from last year to $2.70 billion, high-speed data revenues grew 8% to $1.14 billion, and revenues from voice went up 14% to $480 million.
Meanwhile, advertising revenues declined 19% from last year to $182 million, due primarily to year-over-year declines in the auto, media and political categories.

Adjusted operating income before depreciation and amortization, or adjusted OIBDA, rose 4% to $1.6 billion, and adjusted OIBDA margin edged up to 36.1% from 36% a year ago. Operating income for the quarter grew 5% to $828 million from last year's $788 million.

In the quarter, interest expense totaled $348 million, higher than last year's $229 million.

Third-quarter video subscribers were 12.96 million, lower than preceding second quarter's 13.05 million. Primary Service Units, or PSUs, which represent the total of all video, high-speed data and voice subscribers, were 26.3 million. Revenue generating units increased sequentially to 35.08 million from 34.96 million in the second quarter.

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