Xperi-owned TiVo reported a slight decline in pay TV revenues during the third quarter, which was its first full quarter since completing its MobiTV acquisition.
The company brought in $54.2 million in pay TV revenue, down 2% year over year, but said the decline was smaller than expected thanks to its “higher value IPTV solutions” helping offset declines in the company’s traditional interactive program guides.
“The MobiTV integration is progressing well and we're on track to complete integration during the fourth quarter. With the MobiTV integration completed, we'll be able to further scale our overall IPTV offerings and accelerate subscriber growth,” said Xperi CEO Jon Kirchner, according to a Motley Fool earnings transcript.
RELATED: TiVo wins MobiTV auction with $18.5M bid
In May, Xperi won MobiTV at auction with an $18.5 million bid. The deal was for both MobiTV’s IP/patent business and its ongoing operations which include providing live and on-demand video delivery solutions for video service providers. MobiTV Connect, the company’s software-as-as-service platform, has been tapped by operators including T-Mobile, Cable One and MCTV to launch app-based streaming TV services.
Xperi’s total product revenue for the previous quarter was $117.7 million, down 4% year over year as IPTV growth was offset by declines in connected car, mobile devices, game consoles and consumer hardware, all of which was impacted by supply chain constraints. Kirchner said that beginning in late September, Xperi started to see supply chain impacts that were greater than in prior quarters.
“Given this disruption, we're seeing some year over year declines in customer volumes, impacting our per-unit royalties,” he said. “Importantly, we've made significant progress on our key initiatives, and as we look ahead, we strongly believe that our Product business is solidly positioned for growth.”
The company said it had a “solid quarter” for unit sales of the TiVo Stream 4K and that it’s still making progress on building out the TiVo Stream platform. It also reported growth in connected TV monetization thanks in part to a new connected TV advertising product with audience-targeting based on TiVo's viewership data.