TiVo Announces Significant Growth for Quarter Ending October 31, 2005

TiVo Inc. (NASDAQ: TIVO), the creator of and a leader in television services for digital video recorders (DVRs), today reported financial results for the third quarter ended October 31, 2005. (PDF)

Total subscriptions as of October 31, 2005, were 4,008,000, which represents 74% growth in the subscription base during the past year. Total net new subscription additions in the quarter were 434,000, an increase over the 419,000 total net new subscriptions added in the third quarter of last year.

TiVo-Owned gross subscription additions were 92,000 for the quarter, compared to 119,000 in the third quarter of last year. TiVo-Owned net subscription additions were 55,000 compared to 103,000 in the third quarter of last year. DIRECTV net subscription additions were 379,000 for the quarter, compared to 316,000 in the third quarter of last year.

Service and technology revenues for the quarter increased 52% to $43.2 million, compared with $28.4 million for the same period last year. TiVo reported a net loss of ($14.2) million and net loss per share of ($0.17), a significant improvement compared to a net loss of ($26.4) million, or ($0.33) per share, for the third quarter of last year.

That handily beats the street’s estimates – expected losses were $0.24 a share. The street should be pretty happy.

There are also slides that go with the conference call. (PDF) I’m listening to the call now for anything interesting.

Edit: I’ve posted my follow-up notes here.

About MegaZone

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  • tmesser

    So DirecTV still accounts for 87% of new TiVo subscriptions? Is it just me, or is that a big problem given that the TiVo/DirecTV relationship is basically over?

  • megazone

    Not really as bit a problem as it sounds, since the revenue per box on DirecTV is about 1/8th the revenue on the standalone boxes – TiVo sees $1.13/month for each DTV box, and $8.86/month for each $12.95 monthly sub box, going by the figures released today. As they stated on the call, this quarter was unusually skewed because DirecTV had a $30 million marketing campaign, including rebates that made the DirecTiVo effectively free. That significantly increased DirecTiVo sales. Also, DirecTV has been having issues with the NDS DVR availability, so they’ll continue to ship DirecTiVo for a while as needed.

    TiVo is also pushing their international expansion, as seen in today’s announcement about Taiwan. TiVo will be the first, and only, DVR offered in Taiwan when it is released there next month. And they will be expanding into other countries in the area. TiVo has also stated they are still eager to expand into the European market, and there should be announcements in the coming months.

    Within the US TiVo, of course, has the Comcast partnership which will land in the second half of 2006 and should greatly drive new subscriptions. The partnership with NCTC will also lead to marketing TiVo as the only DVR solution for millions of analog rural cable customers. A lot of these deals have been announced, but haven’t landed yet, so we won’t see any impact until maybe next quarter.

    As TiVo makes more of these deals, and expands overseas, the DirecTV deal has less meaning.