TiVo Narrows Loss in Q3
DirecTV Switch to NDS DVRs Lowers Subscriber Base
By Jon Hemingway -- Broadcasting & Cable, 11/28/2007 9:53:00 PM
Digital-video-recorder pioneer TiVo saw an increase in revenues and narrowed its net loss in its fiscal third quarter.
The company’s consolidated revenues rose 14% in the quarter to $75.5 million as service and technology issues increased 11% to $52.9 million and hardware revenues jumped 28% to $17.2 million.
The company’s net loss in the quarter narrowed to $8.2 million, or $0.08 per share, from $11.1 million ($0.12) in the same period a year ago. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $260,000 compared with a loss of $6 million in the year-ago period.
TiVo’s subscriber base shrank from 4.4 million a year ago to 4.1 million in the latest quarter. The company’s subscriber base has suffered from losses attributable to DirecTV, which no longer promotes the TiVo box in favor of one from News Corp.’s NDS Group.
In an effort to bolster subscriber growth, TiVo struck deals with cable operators such as Comcast and Cox Communications to integrate its software with existing DVRs. TiVo’s rollout on Comcast began this fall.
"In terms of our mass-distribution strategy, our service on Comcast is now available in some nonemployee subscriber homes, and full marketing efforts will begin shortly in the greater Boston area,” CEO Tom Rogers said in a statement.
The company is also diversifying its business through ad sales and its Audience Research and Measurement segments.
Earlier this week, TiVo announced a strategic partnership with NBC Universal that will give its Interactive Advertising Tags increased exposure to advertisers. NBCU also subscribed to TiVo’s StopWatch Ratings Service.
TiVo also recently inked deals with agency Starcom for its PowerWatch offering and media buyer Carat for both StopWatch and PowerWatch.
The company’s guidance for the fourth quarter has service and technology revenues in the $58 million-$60 million range and its net loss in the $9 million-$12 million range. The adjusted EBITDA loss is expected to be $2 million-$5 million.
