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TiVo Revenue Up 73%, Q4 Loss Hits $33M

3/21/2005 02:00:00 AM Eastern

Service revenue at TiVo jumped 73 percent in the company's fiscal fourth quarter, hitting $33 million, up from $19.1 million in the year-ago period.

However, the provider of TV services for digital video recorders reported a $33.7 million net loss for the three months, more than double the $12.4 million net loss in the same quarter a year earlier. This increasing loss, said TiVo, reflects the impact of the company's upward move in rebate expense during the three months, part of its subscription acquisition activities. The quarter's results also include a $3.2 million charge.

At the same time, TiVo recorded 698,000 net subscription additions in the fourth quarter, ended Jan. 31, more than double the 330,000 added in the fourth quarter the previous year. TiVo's total installed base of subscriptions climbed to 3 million in the three months, more than double the 1.3 million reported in the same period a year earlier.

After meeting a year-end goal of doubling TiVo's total subscription base, Mike Ramsay, chairman/CEO, said the company now is “focused on reaching profitability” by the end of its current fiscal year. “We have a growing base of recurring revenues that, combined with planned reductions in total acquisition spending in the year, will put us in a position to achieve this goal by the fourth quarter,” he said.

Of the nearly 700,000 total sub net additions in the fourth quarter, 251,000 were TiVo-owned, compared with a year-ago 130,000, and 447,000 were attributed to DirecTV, compared with 200,000 in the same three months a year earlier.

Of the 3 million cumulative subs in the fourth quarter, 1.1 million were TiVo-owned, compared with a year-ago 676,000, and 1.9 million were attributed to DirecTV, compared with 676,000 the previous year.

For the 12 months, TiVo service revenue reached $107.2 million, compared with $61.6 million in the same period the previous year. Net loss for the 12 months hit $79.8 million, up from a loss of $32 million in the same 12 months a year ago.

Total sub net additions for the 12 months hit 1.7 million, compared with a year-ago 708,000. TiVo-owned sub net additions climbed to 485,000, from 260,000, while DirecTV-attributed sub net additions reached 1.2 million for the 12 months, up from 448,000 the previous year.

TiVo also reported that it has reached agreement with Comcast to offer its service to the cable company's subscribers starting in the second half of 2006. The TiVo/Comcast deal, which is not exclusive, will run for eight years. Consumers will be able to get TiVo functions included in the monthly digital cable box rental. Each company said that pricing has not yet been decided.

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