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UPDATE 2-TiVo expects Netflix's cable deals to drive subscriptions
May 22, 2014 / 10:32 PM / 3 years ago

UPDATE 2-TiVo expects Netflix's cable deals to drive subscriptions

* Expects 2nd-qtr service and tech revenue of $86 mln-$88 mln

* First-quarter earnings $0.07/share vs est $0.06

* Revenue up 30 pct to $107.1 mln

* Shares rise 5 pct in extended trading (Adds CEO comments, details; updates shares)

By Sruthi Ramakrishnan

May 22 (Reuters) - Digital video recorder maker TiVo Inc said it expected a boost to subscriptions for its set-top boxes from Netflix’s deal with U.S. cable operators, after strong growth at European cable partners pushed up its quarterly revenue by 30 percent.

TiVo’s shares rose more than 5 percent in extended trading.

Netflix Inc signed deals with U.S. cable companies Atlantic Broadband, Grande Communications, RCN and Suddenlink in April and May to make its video streaming service available over TiVo’s set-top boxes.

“It (Netflix’s deal) gives more sizzle to the overall offering and the faster the distribution is, faster the revenue growth for us,” Chief Executive Tom Rogers told Reuters.

TiVo’s set-top boxes are in high demand from cable users as they also allow access to online video services such as Netflix, Hulu and Google Inc’s YouTube.

TiVo said total subscribers in the first quarter crossed 4.5 million, including net additions of 341,000 in its cable and satellite television business.

The company’s European cable customers such as U.K’s Virgin Media, Spain’s ONO and Sweden’s Com Hem reported strong demand for TiVo’s set-top boxes.

TiVo forecast second-quarter profit of $6 million to $9 million and service and technology revenue of $86 million to $88 million.

The company reported a net profit of $8.1 million, or 7 cents per share, in the first quarter ended April 30, compared with a loss of $10.3 million, or 9 cents per share, a year earlier.

Revenue rose to $107.1 million from $82.6 million a year earlier, TiVo said on Thursday.

Analysts on an average had expected earnings of 6 cents per share, according to Thomson Reuters I/B/E/S.

The company’s shares, which lost 10 percent of their value in the last six months, were trading at $12.45. They closed at $11.93 on the Nasdaq on Thursday. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das and Sriraj Kalluvila)

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