(REUTERS) -- Time Warner Cable Inc's (TWC.N) quarterly profit rose as it added more residential customers for its broadband services than it had expected.

The No. 2 U.S. cable provider said fourth-quarter profit rose to $564 million, or $1.75 a share, from $392 million, or $1.09 a share, last year.

It posted a 4 percent rise in revenue to $5 billion, topping analysts' estimate of $4.97 billion, according to Thomson Reuters I/B/E/S.

The company raised its quarterly dividend by 17 percent to 56 cents per share and said it plans to buy back $4 billion in shares.

It added 117,000 broadband internet residential customers, beating analysts' estimates for addition of 87,000 customers.

The company lost 129,000 video residential subscribers, compared with analysts' expectation for loss of 130,000 subscribers, according to StreetAccount data.

Time Warner Cable and its peers have been losing video customers to phone and satellite providers and Internet companies such as Netflix Inc (NFLX.O) and Hulu.

Shares of the company closed at $69.11 on Wednesday on the New York Stock exchange.