Sirius XM Q3 Revenues, Income, Subscriber Count Rise
November 4, 2010 at 5:06 AM (PT)
SIRIUS XM RADIO third-quarter adjusted revenue jumped 15% to $722.5 million, with adjusted EBITDA up 60% to $169.7 million, free cash flow rising 132% to $62 million, and net income rising from a loss of $151.5 million in third quarter 2009 to a gain of $67.6 million in 2010's third quarter (Loss of 4 cents/share to gain of 1 cent/share). Net subscriber additions also jumped from 102,295 to 334,727, and the company ended the quarter with 19,862,175 subscribers. Average revenue per subscriber (ARPU) rose 6% to $11.81. Self-pay customer churn fell from 2% to 1.9%. Subscriber acquisition cost (SAC) per gross addition improved 14% to $59.
"We continued our positive momentum in the third quarter, improved our churn and conversion rates, and attained a record high subscriber count. We delivered record adjusted revenue and adjusted EBITDA, increased our free cash flow, and we are now raising our financial guidance for the full year," said CEO MEL KARMAZIN. "We will continue to increase and diversify our content offerings with new shows, new celebrity hosts and specialty programming with fantastic appeal to new and existing subscribers. By growing subscribers and revenue, tightly managing costs, and improving our balance sheet, we are positioned well for long term free cash flow growth."
The company projects full-year 2010 adjusted EBITDA of about $600 million, up from previous guidance of approximately $575 million. The company expects adjusted revenue for 2010 will exceed $2.8 billion and free cash flow will exceed $150 million. SIRIUS XM expects to end the year with approximately 20.1 million subscribers.