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TiVo Reports Wider Loss Amid Subscriber Gains

Mar 10, 2005  •  Post A Comment

Digital video recorder maker TiVo posted a widened fourth-quarter loss Thursday, as the company booked higher expenses in its bid to expand its subscriber base.

The Alviso, Calif.-based company reported a loss of $33.7 million for the three-months ended Jan. 31, compared with red ink of $12.4 million a year ago. Revenue advanced 39 percent to $59.4 million. For the year, TiVo reported red ink of $79.8 million, compared with a loss of $22.5 million a year ago, while revenue rose to $111.3 million from a year-earlier figure of $72.9 million.

The company’s strategy of ratcheting up subscriber-acquisition costs to build its subscriber base paid off. TiVo said it managed to double its total subscriber base to more than 3 million for the fiscal year, with 1.2 million of the total 1.7 million new subscribers coming from TiVo’s partnership with satellite operator DirecTV Group.

Despite the success at adding customers, TiVo officials said Thursday they will shift their focus in the new fiscal year to profitability, and added that they expect the company to turn its first profit by the fiscal fourth quarter, largely by slowing down the high-cost efforts undertaken last year to grow the subscriber base.