Time Warner Cable (OTC: TWCA) has set its 2007 growth targets ahead of its formal stock launch. The shares are still trading under the symbol TWCA on the OTC market on a "when issued" basis. The stock should start trading as TWC around March 1.
The company, a separately traded division of Time Warner Inc. (NYSE: TWX), is predicting $800 million to $1 billion in free cash flow for the year. TWC expects revenue to grow in the mid-to-high thirties range from a base of $11.8 billion and expects OIBDA to grow in the mid-to-high thirties percentage range from a base of $4.2 billion.
In this initial release, the company offers its base rates on the most current numbers: it has 14.6 million customers for various packages; 13.4 million are basic video subscribers and 6 million purchase more than 1 service. The company will give more formal details at its business update conference call at 10 AM EST.
TWCA shares were hit in the market malaise pretty hard yesterday, closing down almost $4 to a new "when-issued" low of $37.80, down from its year to date highs of $44. Time Warner Inc. also saw shares fall hard down almost $1 to $20.21 yesterday. Shares of TWX are up 19 cents to $20.40 currently and TWCA is down 50 cents to $37.30 as of 11 a.m.
Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.
Time Warner Cable has high growth target for 2007
Posted Feb 28th 2007 11:14AM by Jon Ogg
Filed under: Before the Bell, Live Coverage, Competitive Strategy, Time Warner (TWX), Sprint Nextel Corp (S)
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