SiriusXM Sees Revenue, Income Jump In First Quarter
April 28, 2016 at 4:35 AM (PT)
SIRIUSXM first-quarter revenue rose 11% to a record $1.2 billion, with net income up 62% to $171 million (2 to 3 cents/diluted common share) and Adjusted EBITDA up 11% to $441 million. The company added 465,000 net new subscribers, ending with almost 30.1 million, up 8% from first quarter last year; Self-pay net subscribers rose 8% to 24.6 million. Average revenue per user increased 3% to $12.66.
CEO JIM MEYER said, "SIRIUSXM's results exceeded our expectations in the first quarter, and I'm especially pleased we were able to add 465,000 net new subscribers, leading to an 8% increase in subscribers over the prior year. With excellent subscriber growth so early in the year, we are raising our guidance for full year net subscriber additions to 1.6 million. We set first quarter records for revenue, adjusted EBITDA, and free cash flow, and we are on track to achieve all of our financial goals this year.
"With a new full-time music channel from KENNY CHESNEY, live broadcasts from major music festivals, special popup channels for DAVID BOWIE and BILLY JOEL, as well as new talk shows, and unmatched coverage of the presidential primaries, SIRIUSXM continues to be the leader in audio entertainment. We are always looking to deliver new, compelling content to our subscribers."
"During the first quarter, we reduced our outstanding share count by about 3%, spending $588 million to repurchase 159 million shares of our common stock. Our debt to adjusted EBITDA remained low at just 3.4 times, leaving plenty of flexibility to continue capital returns to our stockholders or make acquisitions while also making investments in our technology, content, and new satellite infrastructure," said CFO DAVID FREAR.
SIRIUSXM also increased its guidance for net new total subscribers, now projecting 1.6 million (up from the previous guidance of 1.4 million).