MUMBAI: TiVo, which creates advanced television services, including digital video recorders (DVRs) for consumers, television service providers, and consumer electronics manufacturers in the US, has reported financial results for the third quarter ended 31 October, 2011.
Total net subscription additions were approximately 117,000, accelerating significantly compared to net subscription losses of 33,000 in the prior quarter. This was the first increase in total subscriptions in four years.
Service and technology revenues were up 25 per cent year-over-year, exceeding guidance, while adjusted Ebitda and Net Loss both exceed guidance. There was progress on MSO deployments; ONO and Grande now live; Charter launching shortly; Virgin Media, RCN and Suddenlink deployment rates are accelerating.
DirecTV intends to launch Tivo in select markets next month. Comcast Tivo offering is now in field trial. 1.95 billion interactive ad impressions delivered to date showcases demand for Tivo‘s ability to help advertisers more effectively reach viewers.
Tivo president, CEO Tom Rogers said, "This was a great quarter and represented a significant step in our growth strategy. Our efforts to get TiVo in more homes globally continues to accelerate as we drove approximately 117,000 net subscription additions and returned to total positive net subscription growth for the first time in four years. We also exceeded our quarterly guidance on service and technology revenues, Adjusted EBITDA and net income. In the UK, Virgin Media has now deployed its TiVo offering to more than 220,000 subscribers as of the end of October, and RCN recently expanded its TiVo product offering through the deployment of a whole-home solution. Both ONO and Grande deployments are now live, and we expect Charter Communications to begin initial deployments shortly. Additionally, DirecTV intends to launch its TiVo offering in select markets in December with a nationwide rollout to follow early next year. All of this is a testament to our leadership in advanced television and our ability to drive meaningful solutions to market."
For the third quarter, service and technology revenues were $51.8 million, growing 25 per cent year-over-year. This compared to the guidance of $49 million to $51 million, $41.3 million for the same quarter last year and $49.6 million in the prior quarter. Tivo reported a net loss of ($24.5) million, compared to guidance of a net loss of ($27) million to ($29) million and a net loss of ($20.6) million in the same quarter last year. Net loss per share this quarter on a basic share basis was ($0.21). Additionally, Adjusted EBITDA was a loss of ($13.9) million, compared to Adjusted EBITDA guidance of a loss of ($17) million to ($19) million, and to an Adjusted EBITDA loss of ($12.2) million in the same quarter last year. TiVo ended the quarter with 2.04M total subscriptions, up 117,000.
Rogers continued, "Our mass deployment efforts are proving successful and gaining momentum with Pay-TV operators worldwide. These operators recognize the need to retain their position as the key providers of a video experience for consumers. They are increasingly turning to TiVo because of TiVo‘s proven advanced television solution that enables them to extract more value out of the television experience by joining traditional linear TV channels with broadband delivered content while vastly upgrading the user interface.
For the fourth quarter of fiscal 2012, Tivo anticipates service and technology revenues in the range of $48 million to $50 million. Tivo anticipates net loss to be in the range of ($31) million to ($33) million, and an Adjusted EBITDA loss to be in the range of ($21) million to ($23) million. Included in the fourth guidance is higher expected litigation expense relating to AT&T/Microsoft cases where significant activity is scheduled in December and January and the expected impact of flooding in Thailand on our hard drive costs which we believe will be less than $1 million in the fourth quarter. Further, we anticipate litigation expense to be lower in both the first quarter and the full-year fiscal 2013.
