TiVo Surpasses 5.1 Million Subs

Driven By MSO Deals, Notches Record Q3 Revenues (Updated)
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Fueled by MSO growth, including solid gains among North American cable operators, TiVo surpassed the 5 million subscriber mark in its fiscal third quarter, and posted net revenue of $118.4 million, a record for the company.

TiVo added 328,000 total subscribers in the quarter, up 32% from the 274,000 added in the year-ago quarter, extending its grand total to 5.1 million (4.2 million with MSOs, and 928,000 TiVo-owned subs). For the quarter, ended October 31, TiVo, added 337,000 subs through its MSO partnerships, and lost a net 9,000 TiVo owned subs, narrowed from a year-ago net loss of 21,000 in the category.

Update: Speaking on Tuesday’s earnings call (Nov. 25), Naveen Chopra, TiVo’s CFO and SVP of corporate development strategy, attributed the improved TiVo-owned numbers in part to “inroads” made by TiVo’s new Roamio line and “a lot of pickup” for multiroom products. 

TiVo noted that it’s seeing “positive initial interest” in the Roamio OTA, a new model targeted to cord-cutters, and is hopeful that the product will “meaningfully contribute to our fourth quarter gross subscription additions.”  Tom Rogers, TiVo’s CEO and president, added on the call that the Roamio OTA “has some real legs.” Although it was originally launched on a test basis, the model “is something that I think we will look to push further.” 

In an interview, Rogers noted that North American cable subs were up 69% in the period, as TiVo added new partners and existing partners deployed TiVo-powered platforms more aggressively. Cogeco, TiVo’s first Canadian MSO partner, introduced its TiVo offering late last month. Rogers' thoughts on the recently passed STELAR bill and the anticipated emergence of "virtual" MVPDs will be featured in an upcoming story at Multichannel.com. 

On the financial front, TiVo posted net income of $6.3 million on net revenues of $118.4 million. Revenues were up slightly from a year earlier, while net income was down from $12.48 million in the year-ago period.

Digitalsmiths, the video recommendations and discovery specialist TiVo acquired earlier this year, saw sequential revenues rise 21%. 

Looking ahead, TiVo is forecasting fourth quarter service and technology revenues to be in the range of $87 million to $90 million, and net income of $2 million to $5 million.