You don't need to fish out a whole lot of Scrabble tiles to spell out TiVo's
Good? As previously announced, TiVo continues to move away from costly hardware rebates, earmarking more of its marketing funds to the company's advertising campaign. Service revenues inched 8% higher during the period to hit $53.4 million. The company also broke even on an EBITDA basis, adjusted for $11.2 million in inventory-related charges, which was at the high end of its projected range.
Ugly? The end result was still a loss for the quarter. It also added fewer subscribers than it did during the same quarter a year earlier, and churn rate inched slightly higher, in part because of the competitive HD landscape. The company continues to lose more DirecTV
Hope? This is the four-letter word that TiVo investors have been hanging on lately. There are certainly plenty of potential catalysts. The company's relationship with Comcast
Apart from moving boxes domestically, TiVo continues to make strides in developing an ad-friendly platform. Its international expansion strategy includes inroads in markets like Australia and Mexico.
Between its digital delivery deal through Amazon.com
That opens up a new list of four-letter words like wait, hold, and hype. As long as they're free of expletives, TiVo will make out just fine, even with the current quarter's lackluster guidance.
Replay the related Foolishness:
- Peek at TiVo's past margin improvement.
- Sony takes a shot at TiVo.
- TiVo was singled out as an unloved growth stock.
Costco and Amazon.com are Motley Fool Stock Advisor newsletter recommendations. If you know how to work a TiVo remote, then you know how easy it is to nab a 30-day trial subscription to the newsletter service.
Longtime Fool contributor Rick Munarriz does love his TiVo, and he does own shares in TiVo. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.