SiriusXM Reports Record Second Quarter Revenues Of $1.2 Billion
July 26, 2016 at 4:26 AM (PT)
SIRIUSXM has announced second quarter 2016 operating and financial results, including record quarterly revenue of $1.2 billion, up 10% from the second quarter of 2015.
Net income totaled $173 million in the second quarter of 2016, up 68% from $103 million in the second quarter of 2015. Net income per diluted common share was $0.03 in the second quarter of 2016 compared to $0.02 in the second quarter of 2015. Adjusted EBITDA in the second quarter of 2016 was $468 million, a record quarterly high and a 13% increase from $415 million in the prior year period.
"SIRIUSXM's second quarter results demonstrated continued strong demand for our content bundle and solid execution by our entire team. We grew net new subscribers by 587,000 in the second quarter, and our subscriber base, revenue, adjusted EBITDA, and free cash flow have never been higher. We are pleased to once again raise our key guidance metrics for the full year," said CEO JIM MEYER.
"Our programming team has been hard at work developing new and exclusive content to power our unique service. From Town Hall specials with the cast of BROADWAY's HAMILTON to a pop-up channel dedicated to the legendary PRINCE to full coverage of music festivals like COACHELLA, SIRIUSXM has something for everyone. For two weeks we have been providing 'gavel to gavel' coverage of the REPUBLICAN and DEMOCRATIC National Conventions, and we will follow the political action all the way to NOVEMBER. And stay tuned, because we are always working on exciting new content initiatives to please our subscribers," added MEYER.
Second Quarter 2016 Highlights
- SIRIUSXM Subscribers Surpass 30.6 Million. The company added 587,000 net new subscribers to end the second quarter of 2016 with more than 30.6 million subscribers, an increase of 8% from 28.4 million subscribers at the end of the second quarter of 2015. Self-pay net additions were 507,000 during the second quarter, resulting in self-pay subscribers of 25.1 million, up 7% versus the prior year period.
- Double-Digit Revenue Growth and Record ARPU. Revenue climbed 10% to $1.2 billion, a record high for any single quarter. The increase was driven by an 8% increase in subscribers and a 3% increase in average revenue per user (ARPU) to $12.78.
- Free Cash Flow Reaches a Quarterly Record $395 Million. Free cash flow increased 6% to $395 million in the second quarter of 2016 from $371 million in the second quarter of 2015.
"During the second quarter, we spent $403 million to repurchase 102 million shares of our common stock. SIRIUSXM's average share count declined by 9% in the second quarter 2016 from a year earlier as a result of our substantial share repurchases. Our debt to adjusted EBITDA remained just 3.5 times, and we ended the second quarter 2016 with a cash balance of $476 million following our successful $1 billion Senior Notes offering in MAY. We have ample flexibility to continue making strategic investments in technology, content, and new satellite infrastructure while maintaining strong capital returns to our stockholders," noted CFO DAVID FREAR.