Advanced Television

TiVo subs up 32%

November 27, 2013

By Chris Forrester

TiVo_newPVR manufacturer TiVo reported Q3 sales of $81.7 million (up from $61 million in the same period last year) and is anticipating Q4 sales revenues of about $84 million – which would be around 30 per cent ahead of last year’s $65.7 million. The numbers are at the top end of analysts’ expectations.

Subscriptions grew in line with revenues, and are up 32 per cent to 3.9 million.

CEO Tom Rogers told analysts that the results represented solid progress for the company. “[We are] signing a deal with Blue Ridge Communications. We also launched our first IPTV implementation with Com Hem, highlighting our ability to offer the unique TiVo experience through virtually any type of video delivery platform and on numerous types of devices. And Atlantic Broadband recently launched our multiscreen offering. In addition, TiVo Roamio continues to be well received both by consumers and the press, with Roamio driving year-over-year increases in TiVo-owned gross additions at lower subscription acquisition costs. We also continued to focus on innovation as we recently launched Out-of-Home Streaming on Roamio boxes.”

“During the quarter, we added approximately 300,000 MSO subscriptions, almost 25 per cent better than last quarter’s growth. And roughly 80 per cent of the increase in quarter-over-quarter net adds of close to 60,000 was driven by MSO providers other than Virgin.”

He added: “Our view of next year hasn’t changed since last quarter when we said that, without providing specific guidance, the combination of a full year of Cisco and Motorola licensing revenues and the reduction of litigation expense should provide us with a foundation to exceed adjusted EBITDA of $100 million. Further, I would add that in addition to the factors I just mentioned, we expect to benefit from additional MSO gains and further reductions in our R&D spend.”

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