Sirius XM Raises Its Revenue Guidance
July 26 2016 - 9:50AM
Dow Jones News
Sirius XM Holdings Inc. raised its earnings guidance for the
year as the satellite radio company reported a 10% increase in
second-quarter revenue.
Sirius XM now expects this year's revenue to be about $5
billion, compared with its previous guidance of $4.9 billion.
Shares of the company rose 3.1% to $4.28.
Chief Executive Jim Meyer said the company's results reflect
"continued strong demand for our content bundle" and that the
company's "subscriber base, revenue, adjusted Ebitda and free cash
flow have never been higher."
In its second quarter, Sirius XM said it added 587,000 net new
subscribers to total more than 30.6 million subscribers, an 8%
rise. Its number of subscribers who don't get Sirius's service as
part of a promotion, described as self-paying subscribers, rose
507,000 to 25.1 million.
The company's self-pay churn rate, or the rate at which its
subscribers left the service, rose to 1.8% from 1.6% a year ago.
Its average revenue per user rose 3% to $12.78.
For the quarter ended June 30, Sirius XM's profit rose to $173
million from $102.8 million a year ago. On a per-share basis,
earnings rose to 3 cents from 2 cents a share. Revenue grew 10% to
$1.24 billion.
Analysts polled by Thomson Reuters had forecast 4 cents in
per-share earnings on $1.23 billion in revenue.
During the quarter, the company spent $403 million to repurchase
102 million shares of its common stock, reducing its average share
count by 9%.
SiriusXM in May cut eight Latin music channels from its
satellite-radio service. The channels are now only available
online, where Sirius XM has considerably fewer listeners compared
with those who use the service from their car stereos. The channels
host music from Latin genres such as cumbia and reggaeton. Sirius
XM said the satellite service still has Spanish-language sports and
news channels, a tropical Latin music channel and two other
channels that play music with Spanish lyrics.
Write to Brittney Laryea at brittney.laryea@wsj.com
(END) Dow Jones Newswires
July 26, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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