TiVo reports robust Q1
| 23 May 2014
Weeks after passing the 4.5 million milestone in terms of global subscriptions TiVo has announced a very strong start to 2014.
For the first quarter ended 30 April 2014, the PVR pioneer revealed that service and technology revenues were $86.0 million, an increase of 39% year over-year, driving a net Income of $8.1 million, an $18 million improvement at the same time in 2013.
Taking advantage of being first to deliver Netflix through TiVo-enabled operator set-top boxes in both Europe and North America—for example with Virgin Media and Com Hem—record cable subscription additions contributed to a net 341,000 MSO subscriptions added in the first quarter. In all TiVo-owned quarterly gross additions increased 33% year-over-year as subscription acquisition costs decreased, significantly said the company, in the first quarter. The Digitalsmiths subsidiary also had a good quarter announcing deployments with Charter, Sharp, and Moviefone and launched with DISH Network.
"This was another solid quarter of execution for TiVo," said president and CEO Tom Rogers commenting on the results . "Our record subscriptions are the product of our leading advanced television technology and our growing relationships with operator partners and have contributed to our strong financial results this quarter. In 2011, TiVo launched our solution with three operators. Today, TiVo has launched or will shortly be launching a solution with 15 operators across the globe, not including Digitalsmiths' operator customers, which has significantly increased our MSO subscriber base. Between TiVo and Digitalsmiths, we are now doing business with 18 of the top 25 pay-TV operators in the US along with several abroad. Many of these relationships are in the early stages of deployment and are expected to drive significant growth in subscriptions over the next several years."
Looking forward to the second quarter of fiscal year 2015, TiVo anticipates service and technology revenues in the range of $86–88 million, adjusted EBITDA to be in the range of $27–30 million and net income to be in the range of $6–9 million.
The sequential improvements in service & technology revenue, Adjusted EBITDA and net income are expected to be driven from revenue growth in Digitalsmiths and its MSO business as well from slightly lower operating expenses.