TiVo approaches 3MN customers as revs rise steadily

Joseph O'Halloran | 29-11-2012

As it carries on with its long haul towards profitability, TiVo has announced solid growth in service and technology revenues, MSO revenues and a significant leap in its subscription base.
For its third financial quarter ended 31 October 2012, the PVR pioneer reported an 18% year-on-year increase in its service and technology revenues to $61.0 million, a 44% customer base increase to result in almost three million subs, and MSO service revenue growth of 84%, almost four times that in the previous quarter.
In all, TiVo posted total revenues for the third quarter of $82,027 million, up 27% year-on-year while for the nine months of the fiscal year total revenues were $215.052 million, a year-on-year rise of 25%. This was the engine for an impressive turnaround in profitability which was $59.027 for the third quarter compared with a $25 million loss a year earlier. For the nine-month period, net income was $10.5 million. However, included in the quarter's results were $2.4 million of ongoing licensing revenue and $78.4 million of litigation proceeds relating to intellectual property damages from Verizon.
At the heart of the drive have been recent deals with Mediacom, Midcontinent and Cable ONE, highlighting, the company said, its leadership amongst US mid-sized operators and continued distribution momentum. Key Spanish cable customer ONO and Suddenlink delivered the strongest quarter of TiVo subscription net additions to date and key client Comcast has expanded its TiVo XFINITY On Demand offering to 12 of the markets which it serves.
Going forward to the fourth quarter of Fiscal 2013, TiVo anticipates service and technology revenues in the range of $63 million to $65 million and expects net loss to be in the range of $15 to $17 million and an adjusted EBITDA loss to be in the range of $2 to $4 million, including litigation expense.
Commenting on the quarterly performance, Tom Rogers, president and CEO of TiVo, said: "This was another strong quarter for TiVo, marked by meaningful execution across all areas of our business. We delivered solid revenue growth and our adjusted EBITDA and net income exceeded our guidance even when excluding the significant positive impact of our litigation settlement with Verizon. We also signed new operator partnerships and continued to build our data analytics business. As a result of the progress we have made toward our operational goals, we expect to be profitable next quarter on an adjusted EBITDA basis excluding litigation spend.”
Ross added that he expected TiVo’s existing R&D investment to be “heavily leveraged” and that one tangible product will be a six-tuner gateway set-top box that it is currently developing with Pace.