TiVo shrinks loss in latest quarter

Revenue up 14%

By Ned Randolph -- Video Business, 11/29/2007

NOV. 29 | TiVo narrowed its loss more than expected in its fiscal third quarter ended Oct. 31.

Shares rose more than 24% to $7.46 on the news.

Net losses in the quarter were $8.2 million, or 8¢ a share, compared to the 13¢ a share losses expected. Last year, TiVo lost $11.1 million on the quarter, or 12¢ a share.

Revenue rose by 14% to $75.5 million, up from $66 million a year ago.

TiVo's total number of subscribers fell to 4.1 million from 4.4 million in the year-ago period, mainly because satellite TV provider DirecTV Group no longer sells TiVo-based boxes, opting for its own digital video recorder. However, the number of subscribers using TiVo's stand-alone DVRs grew to 1.7 million from 1.6 million.

TiVo CEO Tom Rogers said the company is subsidizing its DVRs less and issuing fewer rebates. Revenue growth was driven by higher monthly fees from new subscribers, he said.

"We believe that this quarter was an important one in terms of capitalizing on the growth opportunities we have in front of us, both in our stand-alone business and in the newer areas of our business that are beginning to show positive results," Rogers said. "We believe that we have the right pieces in place to move the business forward and have great confidence that we will.”

TiVo recently inked a deal to distribute its service through Comcast's set-top boxes in the Boston market, where customers will pay $2.95 a month for the TiVo service.

The company also has invested in new services this past year to differentiate itself, such as offering TV shows and movies downloaded through Amazon Unbox and selling data on subscriber demographics and habits to advertisers including NBC Universal.

The company said it anticipates a net loss of $9 million to $12 million in the next quarter.