TIME WARNER CABLE REPORTS
2011 SECOND-QUARTER RESULTS

NEW YORK, NY, July 28, 2011 — Time Warner Cable Inc. (NYSE: TWC) today reported financial results for its second quarter ended June 30, 2011.

Time Warner Cable Chief Executive Officer Glenn Britt said: “Time Warner Cable continued to perform well in the second quarter, driven by very strong results in business services and higher residential ARPU. We also continued to generate strong free cash flow while still investing in our core business, allowing us to return more than $1 billion to our shareholders.”

FINANCIAL RESULTS

Revenues for the second quarter of 2011 increased 4.4% from the second quarter of 2010 to $4.9 billion. Residential services revenues grew 2.5% year-over-year to $4.3 billion, business services revenues increased 34.7% to $361 million, advertising revenues grew 4.2% to $225 million and other revenues increased 5.5% to $58 million.

Residential services revenue growth was driven by increases in high-speed data and voice revenues. The growth in residential high-speed data revenues was the result of growth in high-speed data subscribers and increases in average revenue per subscriber (due to both price increases and a greater percentage of subscribers receiving higher-priced tiers of service). Residential voice revenues increased as a result of an increase in voice subscribers. Residential video revenues were essentially flat year-over-year as price increases and a greater percentage of subscribers receiving higher-priced tiers of service, as well as increased revenues from equipment rental and installation charges and DVR service were offset by a decline in video subscribers and revenues from transactional video-on-demand and premium channels. Business services revenue growth was due primarily to increases in voice and high-speed data subscribers, an increase in cell tower backhaul revenues and the closing of the NaviSite, Inc. acquisition on April 21, 2011, which contributed $26 million of revenue during the second quarter. Advertising revenue growth was primarily driven by a year-over-year increase in revenues from advertising inventory sold on behalf of other video distributors, partially offset by a decline in political advertising revenues.

(in millions; unaudited)		2nd Quarter												Year-to-Date 6/30
		2011				2010				Change				2011				2010				Change
Residential services revenues:
Video		$	2,676			$	2,678				(0.1%)			$	5,337			$	5,316				0.4%
High-speed data			1,115				1,028				8.5%				2,209				2,026				9.0%
Voice			497				476				4.4%				990				943				5.0%
Other			12				13				(7.7%)				23				24				(4.2%)
Total residential services revenues			4,300				4,195				2.5%				8,559				8,309				3.0%
Business services revenues:
Video			70				66				6.1%				139				130				6.9%
High-speed data			177				150				18.0%				344				296				16.2%
Voice			46				29				58.6%				88				55				60.0%
Wholesale transport			39				20				95.0%				71				36				97.2%
Other			29				3			NM					31				5			NM
Total business services revenues			361				268				34.7%				673				522				28.9%
Advertising revenues			225				216				4.2%				422				389				8.5%
Other revenues			58				55				5.5%				117				113				3.5%
Total revenues		$	4,944			$	4,734				4.4%			$	9,771			$	9,333				4.7%

NM—Not meaningful.

Adjusted Operating Income before Depreciation and Amortization (“Adjusted OIBDA”) rose 4.2% over the second quarter of 2010 to $1.8 billion. The increase was driven by revenue growth, partially offset by a 4.6% increase in operating expenses. Operating expenses grew primarily due to higher employee costs, video programming expenses and consulting and professional fees, partially offset by a decrease in voice costs. Employee costs were up 5.1% to $1.0 billion, primarily as a result of compensation increases and higher headcount in business services, including NaviSite. Business services employee costs increased 34.4%. Video programming expenses grew 4.1% to $1.1 billion due to contractual rate increases and increased retransmission consent expense offset, in part, by a decline in video subscribers. Voice costs were down 9.6% to $151 million due to a decrease in delivery costs per subscriber related to the in-sourcing of voice transport, switching and interconnection services, partially offset by an increase in subscribers.

Operating Income was up 15.8% over the second quarter of 2010 to $1.1 billion driven by higher Adjusted OIBDA and lower amortization expense.

(in millions; unaudited)		2nd Quarter												Year-to-Date 6/30
		2011				2010				Change				2011				2010				Change
Adjusted OIBDA(a)		$	1,824			$	1,751				4.2%			$	3,555			$	3,422				3.9%
Adjusted OIBDA margin(b)			36.9%				37.0%								36.4%				36.7%
Separation-related “make-up” equity award costs			—				(2	)			(100.0%)				—				(4	)			(100.0%)
Merger-related and restructuring costs			(9	)			(20	)			(55.0%)				(15	)			(31	)			(51.6%)
OIBDA(a)			1,815				1,729				5.0%				3,540				3,387				4.5%
Depreciation			(744	)			(749	)			(0.7%)				(1,488	)			(1,492	)			(0.3%)
Amortization			(8	)			(62	)			(87.1%)				(14	)			(127	)			(89.0%)
Operating Income		$	1,063			$	918				15.8%			$	2,038			$	1,768				15.3%

Adjusted OIBDA less Capital Expenditures for the first six months of 2011 totaled $2.2 billion, a 12.4% increase over the first six months of 2010, due to higher Adjusted OIBDA and lower capital expenditures. Capital Expenditures were $1.4 billion in the first six months of 2011, a 7.4% decrease from the first six months of 2010, largely reflecting lower residential capital spending. This decline in residential capital spending was primarily attributable to lower spending on customer premise equipment and upgrades/rebuilds, partially offset by higher support capital and scalable infrastructure spending.

(in millions; unaudited)		2nd Quarter												Year-to-Date 6/30
		2011				2010				Change				2011				2010				Change
Adjusted OIBDA(a)		$	1,824			$	1,751				4.2%			$	3,555			$	3,422				3.9%
Capital expenditures			(700	)			(736	)			(4.9%)				(1,363	)			(1,472	)			(7.4%)
Adjusted OIBDA less Capital Expenditures(a)		$	1,124			$	1,015				10.7%			$	2,192			$	1,950				12.4%

Net Income Attributable to TWC Shareholders was $420 million, or $1.25 per basic common share and $1.24 per diluted common share, for the second quarter of 2011 compared to $342 million, or $0.96 per basic and $0.95 per diluted common share, for the second quarter of 2010.

(in millions, except per share data; unaudited)		2nd Quarter												Year-to-Date 6/30
		2011				2010				Change				2011				2010				Change
Net income attributable to
TWC shareholders		$	420			$	342				22.8	%		$	745			$	556				34.0	%
Net income per common share attributable to TWC common shareholders:
Basic		$	1.25			$	0.96				30.2	%		$	2.18			$	1.56				39.7	%
Diluted		$	1.24			$	0.95				30.5	%		$	2.16			$	1.55				39.4	%

Refer to Note 1 to the accompanying consolidated financial statements for certain items affecting the comparability of net income attributable to TWC shareholders.

Free Cash Flow for the first six months of 2011 increased 42.4% to $1.7 billion from $1.2 billion in the first six months of 2010, due mainly to higher cash provided by operating activities and lower capital expenditures. Cash Provided by Operating Activities for the first six months of 2011 was $3.1 billion, a 14.4% increase from $2.7 billion in the first six months of 2010. This increase was driven by a change in working capital (primarily net income tax refunds related to bonus depreciation, partially offset by an increase in net interest payments) and higher Adjusted OIBDA.

(in millions; unaudited)		2nd Quarter												Year-to-Date 6/30
		2011				2010				Change				2011				2010				Change
Cash provided by operating activities		$	1,510			$	1,306				15.6%			$	3,080			$	2,692				14.4%
Add: Excess tax benefit from exercise of stock options			12				8				50.0%				41				13				215.4%
Less:
Capital expenditures			(700	)			(736	)			(4.9%)				(1,363	)			(1,472	)			(7.4%)
Cash paid for other intangible assets			(6	)			(6	)			—				(14	)			(9	)			55.6%
Other			(1	)			(1	)			—				(2	)			(1	)			100.0%
Free Cash Flow(a)		$	815			$	571				42.7%			$	1,742			$	1,223				42.4%

Net Debt and Mandatorily Redeemable Preferred Equity totaled $21.0 billion as of June 30, 2011 compared to $20.4 billion as of December 31, 2010, as the cash used for share repurchases, dividend payments and the acquisition of NaviSite was greater than Free Cash Flow.

(in millions; unaudited)		6/30/11				12/31/10
Long-term debt		$	23,922			$	23,121
Debt due within one year			261				—
Total debt			24,183				23,121
Cash and equivalents			(3,510	)			(3,047	)
Net debt(a)			20,673				20,074
Mandatorily redeemable preferred equity			300				300
Net debt and mandatorily redeemable preferred equity		$	20,973			$	20,374

RETURN OF CAPITAL

Time Warner Cable returned over $1 billion to shareholders during the quarter. Share repurchases during the second quarter of 2011 totaled $863 million, or 11.5 million shares of common stock. As of June 30, 2011, approximately $1.8 billion remained under the Company’s share repurchase authorization. Time Warner Cable also paid regular dividends of $163 million during the second quarter of 2011.

SUBSCRIBER METRICS

(in thousands)						Net
						Additions
		3/31/11				(Declines)				6/30/11
Residential services subscribers:
Video(a)			12,191				(130	)			12,067
High-speed data(a)			9,646				54				9,703
Voice			4,457				32				4,489
Primary service units(a)			26,294				(44	)			26,259
Business services subscribers:
Video			166				2				168
High-speed data			346				13				359
Voice			123				13				136
Primary service units			635				28				663
Total primary service units(a)			26,929				(16	)			26,922
Single play subscribers(a)			5,876				(91	)			5,788
Double play subscribers(a)			4,883				(21	)			4,865
Triple play subscribers			3,763				38				3,801
Customer relationships(a)			14,522				(74	)			14,454

Refer to the Trending Schedules posted on the Company’s website at www.timewarnercable.com/investors for definitions related to the Company’s subscriber metrics.

Non-GAAP Financial Measures

The Company refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including OIBDA, Adjusted OIBDA, Adjusted OIBDA less Capital Expenditures and Free Cash Flow. Refer to Note 2 to the accompanying consolidated financial statements for a discussion of the Company’s use of non-GAAP financial measures.

About Time Warner Cable

Time Warner Cable Inc. (NYSE: TWC) is among the largest providers of video, high-speed data and voice services in the United States, connecting more than 14 million customers to entertainment, information and each other. Time Warner Cable Business Class offers data, video and voice services to businesses of all sizes, cell tower backhaul services to wireless carriers and, through its NaviSite subsidiary, enterprise-class hosting, managed application, messaging and cloud services. Time Warner Cable Media, the advertising arm of Time Warner Cable, offers national, regional and local companies innovative advertising solutions. More information about the services of Time Warner Cable is available at www.timewarnercable.com, www.twcbc.com, www.navisite.com, and www.twcmedia.com.

Additional details on financial and subscriber metrics are included in the Trending Schedules posted on the Company’s Investor Relations website at www.timewarnercable.com/investors.

Information on Conference Call

Time Warner Cable’s earnings conference call can be heard live at 8:30 am ET on Thursday, July 28, 2011. To listen to the call, visit www.timewarnercable.com/investors.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, and other factors affecting the operations of Time Warner Cable Inc. More detailed information about these factors may be found in filings by Time Warner Cable Inc. with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Time Warner Cable is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:
Corporate Communications				Investor Relations
Alex Dudley     (212) 364-8229				Tom Robey       (212) 364-8218
Justin Venech (212) 364-8242				Laraine Mancini (212) 364-8202

# # #

TIME WARNER CABLE INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)

		June 30,				December 31,
		2011				2010
		(in millions)
ASSETS
Current assets:
Cash and equivalents		$	3,510			$	3,047
Receivables, less allowances of $86 million and $74 million as of June 30, 2011 and December 31, 2010, respectively			704				718
Deferred income tax assets			147				150
Other current assets			170				425
Total current assets			4,531				4,340
Investments			809				866
Property, plant and equipment, net			13,583				13,873
Intangible assets subject to amortization, net			188				132
Intangible assets not subject to amortization			24,100				24,091
Goodwill			2,233				2,091
Other assets			460				429
Total assets		$	45,904			$	45,822
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	300			$	529
Deferred revenue and subscriber-related liabilities			177				163
Accrued programming expense			827				765
Current maturities of long-term debt			261				—
Other current liabilities			1,576				1,629
Total current liabilities			3,141				3,086
Long-term debt			23,922				23,121
Mandatorily redeemable preferred equity issued by a subsidiary			300				300
Deferred income tax liabilities, net			9,981				9,637
Other liabilities			511				461
TWC shareholders’ equity:
Common stock, $0.01 par value, 328.3 million and 348.3 million shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively			3				3
Additional paid-in capital			8,628				9,444
Accumulated other comprehensive loss, net			(317	)			(291	)
Retained earnings (accumulated deficit)			(273	)			54
Total TWC shareholders’ equity			8,041				9,210
Noncontrolling interests			8				7
Total equity			8,049				9,217
Total liabilities and equity		$	45,904			$	45,822

See accompanying notes.

Certain reclassifications have been made to the prior year financial information to conform to the current period presentation.

TIME WARNER CABLE INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
		(in millions, except per share data)
Revenues		$	4,944			$	4,734			$	9,771			$	9,333
Costs and expenses:
Costs of revenues(a)			2,297				2,205				4,569				4,384
Selling, general and administrative(a)			823				780				1,647				1,531
Depreciation			744				749				1,488				1,492
Amortization			8				62				14				127
Merger-related and restructuring costs			9				20				15				31
Total costs and expenses			3,881				3,816				7,733				7,565
Operating Income			1,063				918				2,038				1,768
Interest expense, net			(366	)			(341	)			(729	)			(688	)
Other expense, net			(32	)			(18	)			(62	)			(33	)
Income before income taxes			665				559				1,247				1,047
Income tax provision			(244	)			(217	)			(500	)			(490	)
Net income			421				342				747				557
Less: Net income attributable to noncontrolling interests			(1	)			—				(2	)			(1	)
Net income attributable to TWC shareholders		$	420			$	342			$	745			$	556
Net income per common share attributable to TWC common shareholders:
Basic		$	1.25			$	0.96			$	2.18			$	1.56
Diluted		$	1.24			$	0.95			$	2.16			$	1.55
Average common shares outstanding:
Basic			334.0				354.8				338.7				353.9
Diluted			339.6				360.1				344.6				358.5
Cash dividends declared per share of common stock		$	0.48			$	0.40			$	0.96			$	0.80

See accompanying notes.

Certain reclassifications have been made to the prior year financial information to conform to the current period presentation.

TIME WARNER CABLE INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)

		Six Months Ended
		June 30,
		2011				2010
		(in millions)
OPERATING ACTIVITIES
Net income		$	747			$	557
Adjustments for noncash and nonoperating items:
Depreciation			1,488				1,492
Amortization			14				127
Loss from equity investments, net of cash distributions			65				48
Deferred income taxes			391				193
Equity-based compensation expense			65				61
Excess tax benefit from equity-based compensation			(41	)			(13	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Receivables			39				2
Accounts payable and other liabilities			30				109
Other changes			282				116
Cash provided by operating activities			3,080				2,692
INVESTING ACTIVITIES
Acquisitions and investments, net of cash acquired and distributions received			(303	)			9
Capital expenditures			(1,363	)			(1,472	)
Other investing activities			18				6
Cash used by investing activities			(1,648	)			(1,457	)
FINANCING ACTIVITIES
Borrowings (repayments), net(a)			—				(1,261	)
Borrowings(b)			1,009				—
Repayments(b)			(44	)			—
Debt issuance costs			(8	)			—
Proceeds from exercise of stock options			98				74
Excess tax benefit from equity-based compensation			41				13
Dividends paid			(330	)			(288	)
Repurchases of common stock			(1,691	)			—
Other financing activities			(44	)			(7	)
Cash used by financing activities			(969	)			(1,469	)
Increase (decrease) in cash and equivalents			463				(234	)
Cash and equivalents at beginning of period			3,047				1,048
Cash and equivalents at end of period		$	3,510			$	814

See accompanying notes.

Certain reclassifications have been made to the prior year financial information to conform to the current period presentation.

TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.  ITEMS AFFECTING COMPARABILITY

     The following items affected the comparability of net income attributable to TWC shareholders for the three and six months ended June 30, 2011 and 2010:

(in millions, except per share data)		2nd Quarter								Year-to-Date 6/30
		2011				2010				2011				2010
Merger-related and restructuring costs		$	(9	)		$	(20	)		$	(15	)		$	(31	)
Gain (loss) on equity award reimbursement obligation to Time Warner(a)			—				3				(5	)			7
Separation-related “make-up” equity award costs(b)			—				(2	)			—				(4	)
Pretax impact			(9	)			(19	)			(20	)			(28	)
Income tax impact of the above items			4				9				8				12
Income tax impact of domestic production activities deduction			15				—				15				—
Income tax impact of expired Time Warner stock options, net(c)			8				2				(12	)			(70	)
After-tax impact		$	18			$	(8	)		$	(9	)		$	(86	)
Impact per basic and diluted common share		$	0.05			$	(0.02	)		$	(0.03	)		$	(0.24	)

2. USE OF NON-GAAP FINANCIAL MEASURES

       In discussing its performance, the Company may use certain measures that are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures include OIBDA, Adjusted OIBDA, Adjusted OIBDA less Capital Expenditures and Free Cash Flow, which the Company defines as follows:

	•		OIBDA (Operating Income before Depreciation and Amortization) means Operating Income before depreciation of tangible assets and amortization of intangible assets.
	•		Adjusted OIBDA means OIBDA excluding the impact, if any, of noncash impairments of goodwill, intangible and fixed assets; gains and losses on asset sales; merger-related and restructuring costs; and costs associated with certain equity awards granted to employees to offset value lost as a result of the Separation.
	•		Adjusted OIBDA less Capital Expenditures means Adjusted OIBDA minus capital expenditures.
	•		Free Cash Flow means cash provided by operating activities (as defined under GAAP) excluding the impact, if any, of cash provided or used by discontinued operations, plus any excess tax benefit from equity-based compensation, less (i) capital expenditures, (ii) cash paid for other intangible assets

TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)

(excluding those associated with business combinations), (iii) partnership distributions to third parties and (iv) principal payments on capital leases.

     Management uses OIBDA and Adjusted OIBDA, among other measures, in evaluating the performance of the Company’s business because they eliminate the effects of (1) considerable amounts of noncash depreciation and amortization and (2) items not within the control of the Company’s operations managers (such as net income attributable to noncontrolling interests, income tax provision, other income (expense), net, and interest expense, net). Adjusted OIBDA further eliminates the effects of certain noncash items identified in the definition of Adjusted OIBDA above. Adjusted OIBDA less Capital Expenditures also allows management to evaluate performance including the effect of capital spending decisions. Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures are also significant performance measures used in the Company’s annual incentive compensation programs. Management believes that Free Cash Flow is an important indicator of the Company’s liquidity after the payment of cash taxes, interest and other cash items, including its ability to reduce net debt, pay dividends, repurchase common stock and make strategic investments. In addition, all of these measures are commonly used by analysts, investors and others in evaluating the Company’s performance and liquidity.

     These measures have inherent limitations. For example, OIBDA and Adjusted OIBDA do not reflect capital expenditures or the periodic costs of certain capitalized assets used in generating revenues. To compensate for such limitations, management evaluates performance through Adjusted OIBDA less Capital Expenditures and Free Cash Flow, which reflect capital expenditure decisions, and net income attributable to TWC shareholders, which reflects the periodic costs of capitalized assets. Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures do not reflect any of the items noted as exclusions in the definition of Adjusted OIBDA above. To compensate for these limitations, management evaluates performance through OIBDA and net income attributable to TWC shareholders, which do reflect such items. OIBDA, Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures also fail to reflect the significant costs borne by the Company for income taxes and debt servicing costs, the share of OIBDA, Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures attributable to noncontrolling interests, the results of the Company’s equity investments and other non-operational income or expense. Management compensates for these limitations by using other analytics such as a review of net income attributable to TWC shareholders. Free Cash Flow, a liquidity measure, does not reflect payments made in connection with investments and acquisitions, which reduce liquidity. To compensate for this limitation, management evaluates such investments and acquisitions through other measures such as return on investment analyses.

     These non-GAAP measures should be considered in addition to, not as substitutes for, the Company’s Operating Income, net income attributable to TWC shareholders and various cash flow measures (e.g., cash provided by operating activities), as well as other measures of financial performance and liquidity reported in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies.