SiriusXM Announces Base Price Increase While Reporting Financial Guidance
September 15, 2011 at 4:01 AM (PT)
SIRIUS XM RADIO has provided 2012 financial and subscriber guidance and affirmed its previous guidance for 2011. CEO MEL KARMAZIN also announced price increases in JANUARY 2012, with the base price rising from $12.95 to $14.49 per month. As part of the FCC's conditions in approving the merger between SIRIUS and XM RADIO in 2008, the company was prohibited from raising its subscription fees for a minimum period of three years.
SIRIUS XM's guidance for 2012 includes:
* Revenue growth of 10% to approximately $3.3 billion,
* Adjusted EBITDA growth of 20% to approximately $860 million, and
* Free cash flow growth of 75% to approximately $700 million.
"Our new guidance for 2012 demonstrates our expectation of robust growth next year," said CEO MEL KARMAZIN. "SIRIUSXM's outstanding financial performance in the midst of considerable economic uncertainty will continue in 2012 as we grow our subscriber base and free cash flow and anticipate that our revenue and adjusted EBITDA growth will accelerate."
The company also affirmed its existing 2011 guidance, including:
* Net subscriber additions of approximately 1.6 million,
* Revenue of approximately $3 billion,
* Adjusted EBITDA of about $715 million, and
* Free cash flow approaching $400 million.
"In the 10 years since SIRIUSXM launched service, we have expanded our programming line-up to provide an unparalleled listening experience. On JANUARY 1st, 2012, we will increase the base price of SIRIUS and XM SELECT from $12.95 to $14.49 per month and will adjust prices on many of our other programming packages. This is the first price increase on our basic service packages since the addition of the NFL, NASCAR, HOWARD STERN, MARTHA STEWART and many college sports to our programming lineup. Through continued investments in technology, the best and most diverse programming in radio is available to our subscribers in cars, homes, offices, business establishments, on the internet and smartphones. We will expand our programming and technology further with the launch of SIRIUSXM 2.0 in the coming months," said KARMAZIN.