TiVo Posts First Quarterly Profit
Well, we’ve been ragging on Blockbuster for posting a loss for a while now and neglecting to mention the unprofitability of TiVo and Netflix in the past. But that’s all starting to change now. On the heels of a recent announcement of Netflix managing earnings, TiVo announced that it had made a profit in the last quarter.
From the New York Times:
TiVo, whose set-top box enables users to skip past commercials, reported net income for the second quarter of $240,000, or break-even per share. That compared with a net loss of $10.8 million, or 13 cents a share, in the same period of 2004.
Revenue for the quarter ended July 31 climbed 46 percent, to $40.7 million, the company said.
Analysts surveyed by Thomson Financial expected TiVo to lose 4 cents a share on revenue of $40.8 million.
“We’ve shown the world that we can manage to profitability,” TiVo’s chief executive, Thomas S. Rogers, said in a telephone interview. “Our customer base is generating enough revenue to secure profitability.”
It’s unclear weather TiVo will be able to maintain profitability however, especially in the face of their recent estrangement from DirectTV, their largest source of subscribers. TiVo’s CEO went on to say that he hoped to focus on increasing business, not becoming profitable in the short term.
…Mr. Rogers said he did not expect TiVo to sustain its profitability in the near term and that the company would probably lose $20 million to $25 million, on revenue of $41 million to $43 million, in the third quarter.
As always, Kiosk will be there with their fingers on the pulse of the industry.