TiVo Delivers Improved Quarterly Results

May 26, 2005  •  Post A Comment

Digital video recorder maker TiVo continued its winning ways Thursday, posting better-than-expected fiscal first-quarter results amid robust subscriber additions through DirecTV and TiVo’s own retail partners.

The Alviso, Calif.-based company reported a narrowed loss of $857,000 for the three months ended April 30, compared with year-earlier red ink of $8.7 million. Revenue jumped 36 percent to $46.9 million.

Fueling much of the growth was service revenue from TiVo’s DVR product, which surged more than 75 percent during the quarter to $38.3 million. The main driver was the addition of 319,000 new subscribers in the quarter, bringing TiVo’s total subscriber base to 3.3 million.

TiVo’s relationship with DirecTV to provide DVR service to its satellite subscribers continued to benefit the company, with 247,000 of the 319,000 new subscribers added in the quarter coming from the satellite provider.

In the past, that relationship has cast a dark cloud over TiVo as DirecTV moves to deploy a competitor’s DVR and de-emphasize the TiVo relationship. However, earlier this spring TiVo got a huge boost when it and cable titan Comcast struck a deal to develop a version of the TiVo service for the cable operator.

Since the multiyear agreement was struck, TiVo shares have staged a comeback. They are up 10 percent since January, after falling more than 40 percent in mid-February.