NEW YORK, Jan. 10, 2018 /PRNewswire/ -- SiriusXM today
announced it added approximately 1.56 million self-pay subscribers
to finish 2017 with approximately 27.5 million self-pay
subscribers, improving upon the company's increased guidance by
approximately 160,000 net additions. Total net subscriber additions
in 2017 were approximately 1.39 million, resulting in total
subscribers of 32.7 million at year end.
The company also announced that it expects to meet or exceed its
2017 guidance for revenue, adjusted EBITDA and free cash flow.
"2017 was a year of remarkable performance for SiriusXM, and I
congratulate our team on its hard work and efforts to achieve these
results. In addition to ending the year with a record number of
subscribers and setting new high water marks for revenue, adjusted
EBITDA, and free cash flow, we made substantial progress in our
efforts to win business in used cars and deploy our next-generation
360L platform. We also continued to return significant capital to
stockholders in 2017 via stock buybacks and an increased dividend,
and we have set ambitious targets for continued growth in 2018,"
said Jim Meyer, SiriusXM's Chief
Executive Officer.
The company also issued 2018 guidance for self-pay net
subscriber additions, revenue, adjusted EBITDA and free cash
flow:
- Self-pay net subscriber additions of approximately 1
million,
- Revenue of approximately $5.7
billion,
- Adjusted EBITDA of approximately $2.15
billion, and
- Free cash flow of approximately $1.5
billion.
"We are very pleased to project adjusted EBITDA growth in 2018
despite the unexpected increase in our royalty rate for the use of
sound recordings recently imposed by the Copyright Royalty Board.
The projected increase in adjusted EBITDA again highlights the
durability and flexibility of our business. Revenue growth will
remain strong despite the adoption of the new revenue recognition
accounting standard (FASB ASU 2014-09) that was effective January
1, 2018, reclassifying approximately $90 million of revenue to
offset expenses principally related to automaker agreements. We are
also pleased with the recent tax reform act which is expected to
increase our cash generation by nearly $900 million over the next 4
years and $200 million in annual tax savings for us beyond that,"
noted David Frear, SiriusXM's Senior Executive Vice President and
Chief Financial Officer.
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest
radio company measured by revenue and has approximately 32.7
million subscribers. SiriusXM creates and offers commercial-free
music; premier sports talk and live events; comedy; news; exclusive
talk and entertainment, and a wide-range of Latin music, sports and
talk programming. SiriusXM is available in vehicles from every
major car company and on smartphones and other connected devices as
well as online at siriusxm.com. SiriusXM radios and accessories are
available from retailers nationwide and online at SiriusXM.
SiriusXM also provides premium traffic, weather, data and
information services for subscribers through SiriusXM Traffic™,
SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers
weather, data and information services to aircraft and boats
through SiriusXM Aviation™ and SiriusXM Marine™. In addition,
SiriusXM Music for Business provides commercial-free music to a
variety of businesses. SiriusXM holds a minority interest in
SiriusXM Canada which has approximately 2.8 million subscribers.
SiriusXM is also a leading provider of connected vehicles services,
giving customers access to a suite of safety, security, and
convenience services including automatic crash notification, stolen
vehicle recovery assistance, enhanced roadside assistance and
turn-by-turn navigation.
To download SiriusXM logos and artwork, visit
http://www.siriusxm.com/LogosAndPhotos.
This communication contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements include, but are not limited to,
statements about future financial and operating results, our plans,
objectives, expectations and intentions with respect to future
operations, products and services; and other statements identified
by words such as "will likely result," "are expected to," "will
continue," "is anticipated," "estimated," "believe," "intend,"
"plan," "projection," "outlook" or words of similar meaning. Such
forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond our control. Actual results and the timing of events may
differ materially from the results anticipated in these
forward-looking statements. SiriusXM is providing non‐GAAP
information on a prospective basis that excludes certain items
because of the nature of these items and the impact they have on
the analysis of underlying business performance and
trends. We believe investors find these Non-GAAP
financial useful in evaluating our core trends because they provide
a direct view of our underlying contractual costs. This information
should be viewed in addition to, and not as an alternative for or
superior to, our results prepared in accordance with
GAAP. In addition, SiriusXM's Non-GAAP financial
measures may not be comparable to similarly-titled measures by
other companies. SiriusXM does not provide a non-GAAP
reconciliation for Adjusted EBITDA guidance to Net income or Free
cash flow guidance to Net cash provided by operating activities
because it does not provide guidance for the reconciling items
between adjusted EBITDA to Net income, which includes the provision
for income taxes, interest expense and other income, nor does the
Company provide guidance for the reconciling items between Free
cash flow to Net cash provided by operating activities, which
includes additions to property and equipment. As items that
impact Net income and Net cash provided by operating activities are
out of the Company's control and/or cannot be reasonably predicted,
the Company is unable to provide such guidance as the most directly
comparable GAAP financial measures may vary materially from the
corresponding GAAP financial measures. Accordingly, a
reconciliation to Net income and Net cash provided by operating
activities is not available without unreasonable effort.
The following factors, among others, could cause actual
results and the timing of events to differ materially from the
anticipated results or other expectations expressed in the
forward-looking statements: our substantial competition, which is
likely to increase over time; our ability to attract and retain
subscribers, which is uncertain; interference to our service from
wireless operations; consumer protection laws and their
enforcement; unfavorable outcomes of pending or future litigation;
the market for music rights, which is changing and subject to
uncertainties; our dependence upon the auto industry; general
economic conditions; the security of the personal information about
our customers; existing or future government laws and regulations
could harm our business; failure of our satellites would
significantly damage our business; the interruption or failure of
our information technology and communications systems; our failure
to realize benefits of acquisitions or other strategic initiatives;
rapid technological and industry changes; failure of third parties
to perform; our failure to comply with FCC requirements;
modifications to our business plan; our indebtedness; our principal
stockholder has significant influence over our affairs and over
actions requiring stockholder approval and its interests may differ
from interests of other holders of our common stock; impairment of
our business by third-party intellectual property rights; and
changes to our dividend policies which could occur at any time.
Additional factors that could cause our results to differ
materially from those described in the forward-looking statements
can be found in our Annual Report on Form 10-K for the year ended
December 31, 2016, which is filed
with the Securities and Exchange Commission (the "SEC") and
available at the SEC's Internet site (http://www.sec.gov). The
information set forth herein speaks only as of the date hereof, and
we disclaim any intention or obligation to update any forward
looking statements as a result of developments occurring after the
date of this communication.
Source: SiriusXM
Investor and media contacts for SiriusXM:
Hooper Stevens
212-901-6718
Hooper.Stevens@SiriusXM.com
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SOURCE Sirius XM Holdings Inc.