TiVo reports subscriber growth ahead of close of Rovi deal

TiVo grew its number of subscriptions by 24% year-on-year in fiscal Q1, in a “strong quarter” that it said positioned it well for its takeover by Rovi.

Announcing its results for the three months ending April 30, 2016, TiVo said it increased its total subscriptions by 315,000 to over 7.1 million.

MSO subscriptions increased 28% year-over-year to 6.1 million, while TiVo-owned subscriptions “increased slightly” to 974,000.

Among the highlights of the quarter, TiVo cited several product enhancements, including a “significant update” to its mobile applications, which now offer “enhanced personalisation and integration of TiVo’s cloud-based search and discovery service on Android devices”.

TiVo also said “progress continues towards launching a new next-generation retail product” and added that it recently reached new distribution agreements with emerging market operators covering Africa, Asia, and Latin America.

“We are very pleased with our solid execution this quarter which continues to position us for a successful combination with Rovi,” said TiVo’s interim CEO Naveen Chopra.

“Rapid change in the video landscape continues to underscore the value of companies that can bring simple, distinctive, and comprehensive navigation to an increasingly fragmented world of video content and consumption.”

For the quarter, TiVo reported an 8% year-on-year increase in service and software and technology revenue to US$99.7 million – driven by a 44% year-over-year increase in our operator-related service and software revenue.

Adjusted EBITDA was US$32.1 million, up from US$29.1 million a year earlier. However, net income was down year-on-year at US$4.16 million compared to US$7.88 million a year earlier.

TiVo said that this included non-recurring restructuring costs of US$3.7 million and Rovi transaction expenses of US$5.2 million, offset by a US$3.2 million tax benefit from these two costs.

Last month Rovi Corporation agreed to buy TiVo in a cash and stock deal worth roughly US$1.1 billion (€961 million). The deal is expected to close in the third calendar quarter of this year, with the combined firm to take the TiVo brand name.