Time Warner Cable Chief Executive Rob Marcus may be the most optimistic boss in cable-land.
Pursued by a takeover-hungry Charter Communications, Marcus on Thursday reported a stronger-than-expected fourth-quarter profit and projected one million new subscribers as part of a rosy three-year operating plan.
The double-barrel upbeat forecast, which also included $3.7 billion in long-term investments, was aimed, in part, in getting Charter to up its $132.50 a share offer for TWC.
It remains to be seen if Marcus’ forecast was justifiably rosy — or just seen through rose-colored glasses.
Marcus reiterated that TWC will not engage in talks with Charter at less than $100 in cash and a $60 in stock — plus other assurances.
TWC shares closed Thursday at $134.20, up 1.6 percent, nearly $2 over the Charter bid price.
“If an offer were presented that exceeds the value we can create ourselves we’d be willing to negotiate,” said Marcus in a morning call with analysts. Later in the day, the CEO told a TV audience that while mergers were sometimes a benefit for shareholders, Charter wasn’t a good fit.
Chief financial Officer Artie Minson, who returned to TWC after a stint at AOL, said: “I’m a big believer in playing to win. I’m here to deliver on this plan.”
If the No. 2 cable company is going to add a million subscribers over the next three years, the fourth quarter didn’t give them any momentum.
TWC reported that it lost 217,000 subscribers in the quarter, more than the 129,000 it lost a year earlier. It lost more than 825,000 customers in 2013.
“Mr. Marcus and team are going to have a tough time going forward, as they try for the short term, at least, to both run the company and fight off suitors,” said consultant Jimmy Schaeffler at The Carmel Group.
In the quarter, TWC reported adjusted earnings per share of $1.82 versus analysts estimates for $1.73. Revenue gained 1.7 percent.