SiriusXM Reports Third Quarter 2019 Results

Third Quarter 2019 Results

SIRIUSXM has released third quarter 2019 operating and financial results. Total revenue of $2.0 billion increased 37% compared to the prior year period, boosted by the acquisition of PANDORA MEDIA on FEBRUARY 1st. On a pro forma basis, revenue climbed 7% from $1.9 billion in the third quarter of 2018. The Company's net income totaled $246 million in the third quarter, compared to $343 million in the prior year period. Net income per diluted common share was $0.05 and $0.07 in the third quarter and the prior year period, respectively.

The decline in net income was primarily driven by refinancing expenses associated with SIRIUSXM's JULY redemption of its 6.00% senior notes due 2024, in addition to non-recurring tax benefits in the prior year period. The Company's effective tax rate for the third quarter 2019 was 22.2%, compared to 3.3% in the prior year period.

Adjusted EBITDA grew 12% to $657 million in the third quarter and resulted in an adjusted EBITDA margin of 32.6%, growing approximately 160 basis points from 31.0% in the third quarter 2018. The adjusted EBITDA margin in the quarter was driven primarily by revenue growth across the business and cost efficiencies in subscriber acquisition costs and revenue share and royalties.

"SIRIUSXM's robust third quarter saw strong results across the board. Total net additions benefited from continuing strength in the auto sector, and our adjusted EBITDA hit an all-time quarterly record of $657 million. Things have never been more exciting at the company as we continue to invest in our brands, content, products and expanded OEM distribution. With two months left in the year, we are raising 2019 guidance for revenue, adjusted EBITDA and free cash flow and we are confident in our expectations for self-pay subscriber growth," said CEO JIM MEYER.

"We officially opened our new HOLLYWOOD studio complex with a special series of shows by HOWARD STERN. HOWARD is at the top of his game and was welcomed to LA by an array of stars and special live performances by ADAM LEVINE and GREEN DAY, all from our state-of-the-art street level performance space we call THE GARAGE. HOWARD's broadcast followed a month of special shows, interviews, and performances in LA exclusively for us by CARRIE UNDERWOOD, JULIA ROBERTS, DAVE MATTHEWS and breakout artist BILLIE EILISH, to name a few. Re-establishing ourselves in the Entertainment Capital of the world, and being closer to compelling talent and brands, bolsters the value of our programming for our subscribers," added MEYER.

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