TiVo announced last month that it had about 7 million subs ahead of Q1 earnings, and followed through Tuesday with word that it ended the period with 7.1 million, with 6.1 million coming way of deals with cable operators and other MVPD partners.
TiVo, which is in the process of being acquired by Rovi for $1.1 billion, said MSO subs rose 28% in Q1. Overall, the company added 315,000 subs in Q1 – 312,000 via MSOs alongside 3,000 TiVo-owned net adds. That result helped TiVo’s retail base to inch up to 974,000, an 18% reduction in total acquisition spend compared to the year-earlier period. TiVo said its retail product churn was 1.3%, the lowest quarterly result in that category in seven years.
TiVo pulled in service and software and technology revenues of $99.7 million in Q1, up 8%, along with net income of $4.2 million, narrowed from $9.1 million in the year-ago quarter. The Q1 2016 result includes $5.2 million in Rovi transaction costs and $3.7 million in restructuring expenses that were partially offset by a $3.2 million tax benefit from those items. Operator-related service and software revenue rose 44%.
TiVo posted total Q1 revenue of $107.3 million, down from $114.7 in the year ago quarter, as hardware revenues dropped to $7.5 million from $22.3 million. Shares were down 15 cents ( 1.51%) to $9.80 in after-hours trading Tuesday.
"We are very pleased with our solid execution this quarter which continues to position us for a successful combination with Rovi,” Naveen Chopra, TiVo’s interim CEO, said in a statement. “Rapid change in the video landscape continues to underscore the value of companies that can bring simple, distinctive, and comprehensive navigation to an increasingly fragmented world of video content and consumption”
TiVo said the Rovi merger is moving forward as planned. The deal, announced on April 29, is expected to close in Q3 2016.
TiVo ended the quarter with cash and cash equivalents of $503 million.
For its fiscal 2017, TiVo affirmed that it expects service and software and technology revenue of $400 million to $420 million, with net income of $40 million to $50 million.