TiVo Inc. (NASDAQ: TIVO), the creator of and leader in television services for digital video recorders (DVRs), today reported financial results for its quarter ended July 31, 2006.
I also listened to the conference call, but I need to listen to the recording again to really get everything.
- Service and Technology revenue grew 30% to $52.9 million, compared to last Q2
- Net loss of $6.4 million is better than expected. Most of the costs were related to the EchoStar litigation, more upfront costs to TiVo from their revised pricing plans, and expensing stock options
- Ad revenue doubled from last Q2
- Retail distribution points nearly doubled with RadioShack starting sales
- TiVo-Owned subscription gross additions were 74,000, net additions were 30,000.
- Total subs (including DirecTV) as of July 31 were up slightly to more than 4.4 million, 24% higher than a year ago.
- TiVo’s net add of 30,000 offset their net loss of 29.000 DirecTV subscribers, but they realize more revenue from TiVo-Owned subs.
- 53% of TiVo-Owned subs pay recurring fees, compared to 51% a year ago. (Likely attributable to dropping lifetime.)
- Out of the 4.418 million subscribers, 1.547 million are TiVo owned, compared to 1.233 out of 3.574 a year ago. So 35% of subs are TiVo-Owned now, compared to 34.5% last year, a small gain.
- Online sales increased from 29% to 33% of total sales, which is good for TiVo as they have higher margins on online sales.
- The recent pricing change to the 3-year bundle (basically 3 years for the price of 2) has increase the number of subscribers opting for a 3-year commitment.
- For Q2 the S2DT represented approximately 54% of all sales.
- Just under 50% of new subscriptions are from analog cable customers.
- Comcast plans to have the TiVo software in field trials by the end of the year, with broad availability in early 2007
- Cox will be using the same software base developed for Comcast, so it will be available only on Cox Motorola DVRs (at least to start, porting to Scientific Atlanta may come later)
- In addition to pursuing more cable deals, TiVo will also pursue additional BellSouth-style distribution partnerships