Earnings: TiVo Reduces 4Q Losses As Revenues Rise

TiVo (Nasdaq: TIVO) narrowed its net loss to $18.7 million, or 19 cents per share, from a net loss of $21.1 million, or 25 cents per share, in the same quarter a year before. The adjusted EBITDA loss was $14.2 million in 4Q06, compared to a loss of $19.9 million iin 4Q05.
As for 4Q revenues, service and technology revenues rose 22 percent year-over-year to $57.4 million. Subscriptions increased 16 percent year-over-year to end the year at 1.7 million.
Update: During the earnings conference call, chief executive Tom Rogers explained that TiVo is in the process of shifting its marketing direction. TiVo wants to focus more advertising initiatives as opposed to one hardware sales, one area that experienced declines. Rogers: “Particularly with the introduction of premium content offerings, we believe the time is right to shift emphasis away from such extensive hardware subsidies and instead move toward greater advertising and brand marketing, which is the most effective way to both grow subscriptions and enhance our financial position,.”
He also reviewed the past year’s deals with companies like Comcast, which helped TiVo boost subscriber growth, as well as the more recent deal with Cox.
— Rogers cited the importance of TiVo’s ratings measurement deal with media buying agency Starcom as proof of the company’s more ad-friendly position. He also read off a list of advertising deals with other major media buyers such as Interpublic, WPP

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