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TiVo Q4 Cable Revenues Soar, But Still Sees Red

Welcome to the broadband and cable news roundup, Hump Day edition.
  • TiVo Inc.'s cable strategy continues to make strides, as operator-related revenues rose 83 percent in the fourth quarter. But that segment remains a minor contributor overall, representing just $8.2 million, or about 9 percent, of the $88.9 million in TiVo's total fourth-quarter revenues, which were up 34 percent from the year-ago period. That still wasn't enough to avoid a fourth-quarter net loss of $15.8 million, compared to a year-ago profit of $7.2 million. TiVo added 222,000 net new subscribers via its service provider partnerships, extending that total to 2.12 million, while TiVo-owned customers dropped by 13,000, for a total of 1.03 million. Among MSOs, Virgin Media Inc. is TiVo's shining example, with the U.K.-based MSO adding almost 900,000 TiVo subscriptions in 2012, for a total of 1.3 million. Still ahead for TiVo in 2013 is its pending cases with Motorola Mobility LLC, Cisco Systems Inc. and Time Warner Cable Inc. The Moto case is "nearing trial," TiVo CEO Tom Rodgers noted in the earnings release. The potential financial exposure to Arris Group Inc., which is in the process of buying Motorola's Home division for $2.35 billion, is capped at $50 million. Looking ahead, TiVo expects first-quarter revenue of $60 million to $62 million, down from the $67 million expected by Wall Street, alongside a net loss in the range of $16 million to $19 million. (See Arris's Exposure to TiVo Lawsuit Capped at $50M.)
  • Kabel Deutschland GmbH will speed up a €300 million (US$ 392 million) plan to upgrade plant to 862MHz and advance its deployment of Docsis 3.0 as cash is freed up after its proposed acquisition of fellow German-based cable operator Tele Columbus Group was blocked, MSO Chief Technology Officer Lorenz Glatz tells Digital TV Europe. (See Kabel Deutschland Buy in Jeopardy.)
  • The Tier 2/3 cable M&A frenzy continued this week as Telephone and Data Systems Inc. (TDS) agreed to acquire Baja Broadband for $267.5 million. Baja runs systems in pockets of Colorado, New Mexico, Texas and Utah serving 74,000 video subs and 212,000 homes passed. It generated revenues of $82.4 million in 2012. TDS, meanwhile, serves 7 million customers in 36 states via its U.S. Cellular Corp., TDS Telecom and TDS Hosted & Managed Services business units. — Jeff Baumgartner, Site Editor, Light Reading Cable



  • Jeff Baumgartner 2/27/2013 | 7:32:25 PM
    re: TiVo Q4 Cable Revenues Soar, But Still Sees Red Comcast ported TiVo to some MOto boxes a while back but scuttled that. Instead, Cocmast is starting to support TiVo at retail by giving the boxes access to its VoD vault. Cox has somethign similar going on with respect to retail support, though I'd have to check to see what the status of that is. -áCharter and TiVo have a deal, but we're still waiting to see what form it takes under the Rutledge regime. But, yeah, Virgin Media represents-á TiVo's biggest cable operator partner by a lot. TiVo's generating a lot of deals with smaller tier 1s and tier 2s, so those deals might take a while to really help to move the needle. JB
    craigleddy 2/27/2013 | 6:06:54 PM
    re: TiVo Q4 Cable Revenues Soar, But Still Sees Red Which U.S. MSOs still are rolling out TiVo boxes? I recall Comcast was in some markets, and Cox and Charter (?). When Virgin in the UK is taken out of the equation, it looks like they have less than a million boxes deployed in the U.S.-á
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