Time Warner Cable Inc. (NYSE:TWC)

The financial data reveals several noteworthy trends in the company's performance over the five-year period ending December 31, 2015.

Revenue

Revenue showed consistent year-over-year growth, increasing steadily from $19,675 million in 2011 to $23,697 million in 2015. This upward trend indicates ongoing expansion or improved sales capacity.

Programming and Content Expenses

Programming and content costs initially decreased significantly from -$9,138 million in 2011 to -$4,703 million in 2012, then gradually rose each year to -$5,815 million by 2015. The initial sharp reduction followed by incremental increases suggests a restructuring or renegotiation of content costs early in the period, with gradual increases reflecting reinvestment or cost inflation thereafter.

Gross Profit

Gross profit increased substantially from $10,537 million in 2011 to a peak of $17,170 million in 2013, then continued to rise more moderately to $17,882 million by 2015. This growth aligns with revenue trends and improved cost management, especially in content costs after 2011.

Operating Expenses

Sales and marketing expenses increased steadily from $1,816 million in 2012 to $2,379 million in 2015, reflecting possible investments in customer acquisition or retention. Technical operations costs similarly rose slightly from $1,434 million to $1,669 million over the same period, indicating increased operational activities or inflationary effects. Customer care expenditures also showed a gradual increase from $741 million to $900 million.

Other Operating Expenses

Other operating expenses varied but remained significant, increasing from -$3,311 million in 2011 to just under -$4,800 million in the subsequent years, with minor fluctuations. This suggests sustained operational costs outside of the main expense categories.

Depreciation and Amortization

Depreciation increased steadily from -$2,994 million in 2011 to -$3,560 million in 2015, indicating growing capital asset investments or shorter asset lifespans. Amortization expenses rose slightly but remained relatively minor compared to depreciation, moving from -$33 million to -$136 million.

Merger-related and Restructuring Costs

These costs increased from -$70 million in 2011 to a high of -$225 million in 2014, then decreased slightly in 2015. The peak in 2014 suggests significant restructuring activities that year.

Operating Income

Operating income showed a moderate increase from $4,069 million in 2011 to $4,632 million in 2014, followed by a decrease to $4,239 million in 2015. Despite growing revenues, the decline in operating income in the last year signals rising costs or diminished operational efficiency.

Interest and Income from Investments

Net interest expense decreased gradually from -$1,518 million in 2011 to -$1,401 million in 2015, indicating slightly improved financing conditions or reduced debt levels. Income from equity-method investments fluctuated significantly, with a notable increase to $454 million in 2012 but settling to lower positive values thereafter.

Gains and Other Income

Gains on sales and settlements were sporadic, with a notable $120 million gain on a Verizon Wireless agency agreement in 2015 and a $64 million gain on a Clearwire investment in 2012. Other income, net, improved substantially, especially in 2012 and 2015, contributing positively to overall income before taxes.

Income Before Income Taxes

This metric increased from $2,462 million in 2011 to a peak of $3,336 million in 2012, then fluctuated somewhat but remained above $2,900 million through 2015. The peak in 2012 corresponds with gains in investment income and other income.

Income Tax Provision

Income tax expense generally increased alongside income before taxes, rising from -$795 million in 2011 to a high of -$1,217 million in 2014, then slightly declining to -$1,144 million in 2015.

Net Income and Attribution

Net income attributable to shareholders increased from $1,665 million in 2011 to a peak of $2,155 million in 2012, then declined somewhat to $1,844 million by 2015. This decline in the final years suggests pressures on profitability despite revenue growth, potentially due to higher operating and restructuring costs.