TiVo Revenues Sink On Lower Pay TV Licensing Deals

As it continues to review “strategic alternatives” for the company, TiVo posted sharply lower revenues in the fourth quarter.

The entertainment program guide/TV time-shifting platform company saw revenue decline 21% in the quarter to $168.5 million. It says it is in “ongoing discussions regarding potential strategic options or transactions for each of our product and IP licensing businesses.”

TiVo’s stock was down 11% on Wednesday to $9.94.

TiVo saw a 4% decline in product revenue -- which include platform and software sales -- to $96.5 million. The company says there was a “decrease in hardware revenue, as a result of the planned transition of our MSO [cable operating] partners and retail customers to deploying the TiVo service on third-party hardware.”



Revenue licensing to U.S. pay TV providers sank 49% to $42.3 million. Total licensing deals -- which includes deals to consumer electronics manufacturers, such as TV sets -- declined 37% to $72 million. TiVo does not report net income.

TiVo continues to be in litigation with Comcast Corp over patent issues.

Says Eric Wold, media analyst at B.Riley FBR: “With TIVo shares down more than 20% since the strategic review was announced  [February 2018] and down around 50% since litigation against Comcast was first announced [April 2016], we believe TiVo shares reflect a zero probability of either a positive outcome from the strategic review or a successful settlement/license with Comcast— which we continue to believe is the wrong stance to take.”

TiVo says 22 million homes globally use TiVo’s TV set-top equipment, which includes video recording.

TiVo’s Targeted Audience Delivery (TAD) platform, which creates segments of TV viewers from its TV return path data, had revenue growth of 117%, compared to the previous quarter.

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