TiVo is refocusing its efforts on working with operators in the US and international expansion, and is cutting the work force with about 50 FTEs.
“Our priorities are North American MSO growth, international expansion and consumer innovation that can take the company beyond the domain of the traditional DVR,” Naveen Chopra, TiVo’s new chief financial officer and interim CEO, told employees in a memo obtained by Multichannel News.
“As part of ensuring we are optimally positioned to succeed in these areas, today we made the difficult decision to eliminate roles filled by about 50 full-time TiVo employees and some contractors.”
In January, Chopra was named TiVo’s interim CEO. In a statement with the company’s Q4, 2015, he said: “We believe TiVo is a clear leader in next-generation video technology. To convert on our commercial potential, however, we need to chart a new path. We will focus on growth in our operator-related businesses; launch a new class of consumer products; and put in place organisational and operational changes that will drive revenues and better manage costs.
“We expect this simplified, pragmatic focus will drive $25-$35 million in improved Adjusted EBITDA this year; and position us to capture profitable market share in a rapidly evolving video ecosystem.”
TiVo’s traditional MSO service revenue grew 45% in the fourth quarter due to factors including strong subscription growth in Spain where Vodafone continued its aggressive bundling of the TiVo powered video service with its mobile and data services and increased deployments in North America where operators like Cogeco helped drive 52% YOY growth in total North American subscriptions.
Service and software & technology revenue growth also included a 45% increase in Media services & other revenue, primarily from the acquisition of Cubiware, whose business has experienced robust growth with key operators like Columbus Communications (part of Cable & Wireless) and Cablemas (part of Televisa), and increased Digitalsmiths household deployments with DISH Network, Charter, and Time Warner Cable.
The combination of these operator-related revenue streams from TiVo’s traditional MSO business as well as the additions of Digitalsmiths and Cubiware represented 52% of total service and software revenue compared to 39% in the year ago quarter. This growth led to fourth quarter service and software & technology revenues of $101.7 million, an increase of 11% compared to $91.7 million for the same quarter last year, and within guidance of $101 million to $104 million.
TiVo subscriptions are now nearing seven million, up 24% YOY.
