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Time Warner Cable's higher costs weigh down 4Q profit, but it still tops expectations. The company added about 200,000 subscribers during the quarter. It is in the process of being bought by Charter Communications Inc. for about $55 billion.

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NEW YORK — Time Warner Cable Inc. on Thursday reported its profit dropped in the fourth quarter as higher costs outpaced a boost in revenue.

The cable company, which is being bought by Charter Communications Inc. for about $55 billion, added 200,000 residential subscribers during the quarter. A portion of the higher costs are related to the deal.

The company's profit fell 12 percent to $486 million, or $1.70 per share. Earnings, adjusted for costs related to mergers and acquisitions, came to $1.80 per share.

The results beat Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.79 per share.

Revenue rose 5 percent to $6.07 billion in the period on growth in residential services. Ten analysts surveyed by Zacks expected $6.03 billion.

Costs and expenses rose 8.4 percent to $4.95 billion.

For the year, the company reported profit of $1.84 billion, or $6.44 per share. Revenue was reported as $23.7 billion.

Time Warner Cable shares have fallen slightly more than 5 percent since the beginning of the year, while the Standard & Poor's 500 index has declined nearly 8 percent. The stock has climbed 22 percent in the last 12 months.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TWC at http://www.zacks.com/ap/TWC

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Keywords: Time Warner Cable, Earnings Report

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