Sirius XM Holdings Inc. on Tuesday boosted its revenue and
subscriber guidance for the year on Tuesday after new subscriber
additions surged 46% in the second quarter.
For the year, Sirius now expects net subscriber additions of 1.8
million, up from its previous guidance of 1.4 million, and revenue
of $4.5 billion, up from its previous guidance of $4.47
billion.
Shares of the company gained 3.1% in premarket trading.
During the quarter ended June 30, Sirius XM added a net 692,000
new subscribers, compared to net additions of 475,000 a year
ago.
It had 28.4 million total subscribers at the end of the period,
up from 26.3 million a year ago.
Monthly churn, or the rate at which subscribers left, edged down
to 1.6% from 1.8% a year ago. Sirius said the rate was its best
since its 2008 merger with XM.
Overall, the company posted a profit of $102.8 million, down
from $120 million a year earlier. On a per-share basis, earnings
were flat at 2 cents a share.
Sirius in June agreed to settle a case with major record labels
over oldies music the company has aired.
Excluding the $108 million pretax settlement, per-share earnings
would have been 3 cents.
Revenue grew 8.5% to $1.12 billion.
Analysts polled by Thomson Reuters expected per-share profit of
three cents and revenue of $1.12 billion.
Subscriber revenue grew 7% to $940.1 million, while advertising
revenue increased 13% to $28.8 million.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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