Income Up, Churn Down for DVR Pioneer

TiVo CEO Tom Rogers said the company's first quarter performance positions the DVR pioneer to post its first profitable year on an Adjusted EBITDA basis in fiscal 2009.

Late Wednesday, TiVo reported first quarter net income of $3.6 million, compared to net income of $835,000 for the same period last year. Service and technology revenues were $54.9 million, compared with $58.1 million for the same period last year.

TiVo reported that internally owned subscription gross additions for the first quarter were about 48,000, compared to 57,000 gross additions for the year-ago period. Overall, TiVo-owned subscriptions ended the period at 1.7 million.

As expected, TiVo reported a net decline in MSO/broadcaster subscriptions during the period, a fall attributed to DIRECTV no longer deploying new TiVo boxes and other mass distribution deals, such as the one the company has with Comcast, still in the early phases of deployment. Those subscriptions numbered 2.073 million at the close of the quarter.

Total TiVo subscriptions as of April 30 were 3.8 million. Also, the monthly churn rate for the DVR service in the first quarter was 1.3 percent, down from 1.5 percent in the prior quarter.