On The Heels Of Record Revenues, SiriusXM Steels For Battle With Liberty Media
May 2, 2012 at 3:51 AM (PT)
SIRIUSXM announced first-quarter revenues rose 11% to a record $805 million with its subscriber count up by 405,000 to a record 22.3 million YESTERDAY (NET NEWS 5/1), and "continues to hold onto its cash, potentially paving the way for a future battle with majority shareholder LIBERTY MEDIA," reports THESTREET.COM. LIBERTY MEDIA currently holds a 40% share of the satcaster.
During the financial call, CEO MEL KARMAZIN explained the company would retire debt at favorable terms, and not give back cash -- which would increase LIBERTY's stake. "We believe a good use of our cash is to return capital to shareholders," KARMAZIN said on the conference call. "We've talked about acquisitions as something we would consider, but there's nothing we're seeing out there we feel anxious about acquiring."
DEUTSCHE BANK analyst AARON WATTS told THE STREET that he "believes SIRIUS is likely to refinance remaining debt as soon as economically feasible, having repurchased $129.6 million worth of debt since the start of 2012. 'Further, we anticipate the board will eventually consider returning capital to shareholders with SIRI hovering around 3x leverage,'"