TiVo earned net income of $240,000 in 2Q05. That may not sound like a lot but compared to eight years of losses and a 2Q04 net loss of $10.8 million it’s a nice piece of change. TiVo’s revenue for the quarter was up 46 percent from 2Q4, to $40.7 million from $27.8 million. The break-even per share results beat the street — Thomson Financial projected losses of $0.04 per share — and the stock took a hit anyway. That could stem in part from remarks by CEO Tom Rogers, who warned that the company’s strategic push to expand its base and reduce reliance on DirecTV means foregoing a previous goal of sustainable profitability by 4Q05. The “more aggressive marketing approach” means higher acquisition costs per customer but stand-alone customers are worth more to TiVo.
– TiVo added 254,000 net new subs in 2Q05, nearing 3.6 million total subscribers. The bulk of TiVo subs continue to come from DirecTV — 214,000 of the new net subs were DirecTV and the total is about 2.3 million.
– Rogers’ links to the cable industry helped put in the CEO position and he’s coming through. In addition to the major Comcast deal he brokered while he was on the board, TiVo’s latest deals include distribution through the National Cable Television Cooperative and a substantial deal with Cebridge Connections to put 80-hour TiVo Series2 DVRs in 300,000-plus households.
– TiVo also started its interactive advertising program during 2Q05 with campaigns from GM and The WB.
Earnings release | Webcast replay
Update: Also announced Wednesday, TiVo and Cablevision will test market an offer that includes a TiVo unit and a wireless router for satellite customers who switch to the cable company’s triple play (voice, video, high-speed data) package.
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