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TiVo’s Q3 Loss Widens

Nov 22, 2004  •  Post A Comment

Digital video recorder maker TiVo Inc. on Monday reported a wider fiscal third-quarter loss as the company’s robust subscriber growth, and the marketing efforts surrounding that growth, pushed the company deeper into the red.

The Alviso, Calif.-based company booked a net loss of $26.4 million for the three months ended Oct. 31, compared with a year-earlier loss of $7.4 million.

Revenue fell 11.5 percent to $38.3 million as a 73 percent surge in service revenue was offset by an increase in negative revenue associated with rebates and revenue sharing.

TiVo said it booked higher subscription acquisition expenses as it began offering higher rebates for consumers, expanded the number of retailers selling TiVo devices and increased radio and TV advertising spending.

The company said it added 419,000 new subscribers in the quarter, of which 316,000 were the result of TiVo’s co-branding relationship with DirecTV Group, representing an 111 percent increase. Growth in standalone subscriptions, those directly owned by TiVo, was 103,000, 75 percent higher than TiVo had a year ago.

TiVo now has 2.3 million subscribers.