TiVo reports accelerating MSO growth

TiVo reported posted accelerating year-over-year service revenue growth from multi-system operators (MSOs), with subscriptions from these pay TV operators up 32% year-on-year.

Reporting its second quarter results, TiVo said that MSO subscriptions now stand at more than 5 million, with total the TiVo subscription figure now over 6 million. MSO revenues also climbed 48% year-on-year to US%15.3 million.

Overall TiVo reported record service and software and technology revenue of US$99.1 million, an increase of 14% year-on-year and a figure that exceeded its guidance of US$94 to US$97 million.

“Our relationships with operator partners continue to strengthen and contribute to our strong financial results,” said TiVo president and CEO, Tom Rogers. “In terms of existing relationships, our international distribution partners contributed nicely to the 284,000 MSO subscription additions we posted in the quarter.”

TiVo said that it benefited from Vodafone Spain’s efforts to “significantly market its television offering, including TiVo, as a bundled package to mobile customers” and said its recent project with Vodafone to expand its TiVo solution to fiber to the home customers, in addition to the ONO cable network, will “continue our momentum in Spain.”

“In the UK, there are now close to three million TiVo subscriptions and we continue to see opportunities in the UK as Liberty Global/Virgin Media executes on Project Lightning, its effort to expand its network to an additional four million homes and businesses,” said Rogers.

Elsewhere, TiVo said that its recently acquired emerging market offering, Cubiware, is performing “ahead of expectations” and that that its video discovery business Digitalsmiths grew its services revenue by 65% year-over-year.

Overall, TiVo reported adjusted EBITDA of US$32.4 million, up from US$29.9 million a year earlier. However, net income came in at US$8.3 million, down from US$9.3 in Q2 2014.