UPDATE 3-Time Warner Cable profit beats, warns of slowdown

* Q2 EPS 89 cents up from 85 cents year-earlier

* Q2 rev up 4 pct to $4.47 bln, ahead of expectations

* To launch 4G wireless service in four U.S. cities

* Sees slowdown in rev, profit growth in 2nd half

* Shares down 2.7 percent

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By Yinka Adegoke

NEW YORK, July 29 (Reuters) -Time Warner Cable Inc (TWC.N), posted a better-than-expected rise in quarterly profit on Wednesday but warned it expects a slowdown in revenue and profit growth in the second half of the year.

Chief Financial Officer Rob Marcus said the weak economy has intensified already stiff competition among cable, phone, and satellite companies. Time Warner Cable's shares dipped 2.7 percent in Wednesday trading.

"Given the slow subscriber growth in recent quarters we expect that revenue growth will slow in the second half of the year," Marcus said on a conference call with analysts." He said faster-than-expected growth in programming and marketing expense costs will also hamper operating profits.

Not only is Time Warner Cable facing price wars with phone and satellite TV companies, but it is also beleaguered by the weak U.S. housing market. As fewer Americans move home there is less opportunity for pay-TV operators to sell new services.

Time Warner Cable executives also said the U.S. recession led customers to 'cut the cord' on their home phone service and use only mobile phones.

Chief Executive Glen Britt said the company will launch its 4G wireless service this fall in four cities including Charlotte, North Carolina and Dallas, Texas.

Time Warner Cable and Comcast Corp (CMCSA.O) formed a 4G partnership with wireless company Clearwire Corp (CLWR.O) last year, which is expected to yield faster wireless Internet speeds than current connections.

Britt also said the company would soon introduce its 'Wideband' Internet service in homes in its New York City market.

The plans, like the previously announced Web TV trial 'TV Everywhere', are part of a strategy for the cable company to make its services available to customers beyond the home.