SiriusXM Third Quarter 2022 Revenue Up, Net Income Down

Q3 Results

SIRIUSXM saw modest revenue gains for third quarter 2022, increasing 4% year-over-year to $2.28 billion, but net income fell from $343 million to $247 million (8 to 6 cents/basic and diluted share). Adjusted EBITDA remained basically flat at $720 million. The satellite and streaming service added 187,000 net self-pay subscribers to end the quarter at 32.2 million; the SIRIUSXM division grew revenue 5% to $1.7 billion, credited to a 6% increase in average revenue per user to a record $15.72, and gross profit at the division also rose 6% to $1.1 billion. The PANDORA and Off-Platform segment saw just a 1% increase in revenue to $407 million, with PANDORA's ad revenue per thousand hours down 5% to $103 and podcasting and other off-platform revenue rose 37% to $123 million. PANDORA monthly active users fell 7% to 48.8 million, and its gross profit fell 12% to $173 million.

The company's Board of Directors also announced a 10% increase in its quarterly dividend to $0.0242 per share of common stock, payable on NOVEMBER 30th to shareholders of record as of NOVEMBER 11th, and the company has reiterated its full-year guidance of $9 billion in revenue, $2.8 billion in Adjusted EBITDA, and $1.55 billion in free cash flow.

"We are pleased to report third quarter results that reflect strong execution during the period while leaning into investments designed to ensure SIRIUSXM will thrive long-term," said  CEO JENNIFER WITZ. "This quarter we focused on enhancing the listener experience and expanding our unparalleled stable of programming and talent to continue providing our subscribers with the best in audio, both in-car and in the SXM App. From live sports and election coverage to exclusive artist channels and live Small Stage performances, we are thrilled to offer a diverse and differentiated content slate paired with technology that makes it easier than ever to discover new favorites."

"SIRIUSXM delivered solid subscriber and revenue growth during the third quarter, and while we continue to closely monitor downward trends in the advertising market that add risk to our 2022 expectations, we are pleased to reiterate our full-year subscriber and financial guidance," said CFO SEAN SULLIVAN. "During the quarter, SIRIUSXM returned $262 million in capital to stockholders and ended the quarter with net debt to adjusted EBITDA of 3.5 times. Today we are also announcing a 10% increase in our quarterly dividend, bringing that dividend to an annualized growth rate of 16% since its inception in 2016. With limited near-term maturities, significant ongoing cash generation, and approximately $1.4 billion in undrawn revolver capacity and cash, we have tremendous flexibility to continue investing in our business and evaluating strategic opportunities."

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