By Sruthi Ramakrishnan
Feb 26 Digital video recorder maker TiVo Inc
reported a better-than-expected 20 percent rise in
quarterly revenue and said it expects to benefit from Comcast
Corp's $45.2 billion acquisition of Time Warner Cable
The deal will give Comcast, a key cable customer of TiVo,
access to 19 of the 20 largest U.S. TV markets and is widely
expected to reshape the country's pay TV and broadband markets.
TiVo also said Comcast plans to expand the integration of
Xfinity On Demand, the cable company's digital store of movies
and TV shows, on TiVo's set-top boxes to its entire market.
"To the extent (the expansion) continues to apply to the
digital markets that Comcast may acquire, we certainly look at
that as a potential benefit," Chief Executive Tom Rogers told
Cable subscribers are increasingly turning to TiVo's set-top
boxes which also allow them to access online video services such
as Netflix Inc, Hulu and Google Inc's YouTube.
Analysts expect Netflix's recent deal to pay Comcast more
for faster broadband speeds to benefit TiVo.
The agreement is likely to drive more subscribers to buy
Tivo's set-top boxes as streaming Netflix on
Comcast-owned-and-operated boxes have TV and movie rights
content conflicts, Albert, Fried & Co analyst Rich Tullo wrote
in a pre-earnings note.
TiVo's cable customers also include Virgin Media Inc
, DirecTV, Ono, RCN and Suddenlink.
Comcast reported last month that it added more video
subscribers than expected in the fourth quarter, while DirecTV
reported a higher-than-expected rise in U.S. subscribers.
TiVo said it added 319,000 net subscribers in the fourth
quarter ended Jan. 31, including 313,000 subscribers in its
cable and satellite television business, which provides digital
video recording service through its own and service providers'
The company forecast first-quarter profit of $5 million-$8
million and service and technology revenue of $85 million to $87
TiVo posted a net profit of $710,000, or 1 cent per share,
in the fourth quarter, compared to a loss of $15.8 million, or
13 cents per share, a year earlier.
Excluding an unanticipated non-cash charge of $4.8 million,
profit was 2 cents per share, according to Thomson Reuters
Revenue rose to $106.3 million from $88.9 million a year
Analysts on average had expected earnings of 4 cents per
share on revenue of $84.1 million, according to Thomson Reuters
Shares were little changed in post-market trading after
closing at $12.83 on the Nasdaq on Wednesday.