Time Warner Cable targets closing Charter deal by year end

By Arathy S Nair (Reuters) - Time Warner Cable Inc said on Thursday it was working towards closing the deal with Charter Communications by the end of the year. Charter said in May that it would buy Time Warner Cable in a cash-and-stock deal, which valued the larger rival at $78.7 billion. "We're well into the process of seeking regulatory approvals and planning for integration of our operation," Chief Executive Robert Marcus said on a post-earnings conference call with analysts. Regulatory obstacles had earlier sunk Comcast's bid for Time Warner Cable. MoffettNathanson analyst Craig Moffett said the odds of approval for the Charter deal seems to be getting better based on the recent developments. Last week, AT&T Inc completed its acquisition of DirecTV, after regulators cleared the deal. Time Warner Cable reported a 3.5 percent rise in second-quarter revenue that still fell short of the average analyst estimate as the company lost about 45,000 residential video customers. Cable companies have been struggling with declining subscriber numbers as viewers shift to cheaper and more flexible streaming services offered by Netflix Inc , Amazon.com Inc , Hulu and others. Charter executives are also exploring whether to launch an online video service as part of its combination with Time Warner Cable, Reuters had reported in May. Net income attributable to common shareholders fell to $463 million, or $1.62 per share, in the second quarter ended June 30, from $499 million, or $1.76 per share, a year earlier. Excluding items, the company reported earnings of $1.54 per share, missing the average analyst estimate of $1.81 per share. Revenue was $5.93 billion, while analysts were expecting $5.94 billion, according to Thomson Reuters I/B/E/S. The company's shares were little changed at $189.46 in morning trading on the New York Stock Exchange. Up to Wednesday's close, shares of the company have risen about 25 percent this year. (Reporting By Arathy S Nair in Bengaluru; Editing by Maju Samuel and Anil D'Silva)