Virgin, ONO drive TiVo revenues but losses mount
Editor | 30-08-2012
Continued success with Virgin Media who hit one million subscriptions in just over a year plus a doubling in ONO subscriptions from the last quarter have added up to a 10% year on year rise in service and technology revenues for TiVo.
For its second financial quarter ended July 31, 2012, service and technology revenues were $54.1 million, a healthy rise compared with the $49.6 million posted for the same quarter in Fiscal 2012. The PVR pioneer says that continued momentum from operator deals has led to a 36% increase in MSO revenue over last quarter. Total subscriptions grew by 230,000 in the quarter, increasing total subscriptions 41% from last year.
That said, TiVo reported a net loss of $27.7 million, significantly higher than that ($19.6 million) for same quarter in Fiscal 2012. Adjusted EBITDA was a loss of $15.8 million, $6.6 higher than in the same quarter last year. The quarter also saw the acquisition of analytics technology provider TRA and from whom TiVo expects to be able to offer industry Internet-level measurement and accountability.
Commenting on the results, Tom Rogers, President and CEO of TiVo, said, "This was another solid quarter for TiVo as we achieved our financial guidance, gained more subscriptions within our current distribution relationships, signed new distribution deals, deepened our capabilities in the audience research business, and showcased the benefits of our R&D investment through the delivery of the TiVo experience via virtually any kind of operator infrastructure and through tablets, smartphones, and computers. We believe the positive momentum this quarter, as well as the cost efficiencies we are targeting in the second half of the year, will significantly advance us towards our goal of approaching breakeven Adjusted EBITDA excluding litigation spend."
For the third quarter of fiscal 2013, TiVo anticipates service and technology revenues in the range of $57 million to $59 million. TiVo anticipates net loss to be in the range of ($27) million to ($29) million and an Adjusted EBITDA loss to be in the range of ($14) million to ($16) million. Litigation costs due to the upcoming Verizon trial scheduled for October 2012 are expected to remain high and to significantly impact net loss and Adjusted EBITDA loss in the third quarter of Fiscal Year 2013
Further, TiVo continues to expect to approach breakeven in Adjusted EBITDA excluding litigation spend. As such, it anticipates increases in MSO revenue, a reduction in research and development spend, and increases in litigation spend during the back half of the year. TRA is expected to make a positive contribution to Adjusted EBITDA in the next fiscal year once planned synergies are realised.