SiriusXM Revenue Flat, Net Income Up For Fourth Quarter 2022

Q4

SIRIUSXM fourth quarter 2022 revenue was flat year-to-year to $2.283 billion, with net income up 15% to $365 million (8 to 9 cents/basic and diluted share). Adjusted EBITDA rose 10% to $742 million.

"2022 was a strong year for SIRIUSXM, as we continued to focus on bringing consumers the best in audio entertainment both in-car and on the go, reaching record high revenue and record low churn,” said CEO JENNIFER WITZ. "Our strong operating and financial performance in 2022 are a testament to our resilient business model and growing contribution from streaming, which helped us deliver 348,000 net new self-pay subscribers. In 2023, we expect SIRIUSXM to deliver strong operating performance and generate significant cash, even as we face a challenging economic environment and continue to make material investments in our technology infrastructure.”

"SIRIUSXM met all of its financial guidance in 2022 -- a notable accomplishment in a tough year. We believe our new 2023 financial guidance reflects our current view of the business and industry trends," said CFO SEAN SULLIVAN. "While we are not issuing subscriber guidance today, we anticipate modestly negative self-pay net adds for the year as economic and demand uncertainty persists, auto sales remain soft, and we reduce marketing ahead of our planned launch of a new streaming experience later this year.

“In 2022, SIRIUSXM returned approximately $2 billion in capital to stockholders via a $987 million special dividend, $352 million in recurring dividends – up 31% from 2021, and $639 million in common stock repurchases. We ended the year with a net debt to adjusted EBITDA of 3.3 times, and we intend to remain disciplined in our approach to the balance sheet and capital returns."

The company's SIRIUSXM segment -- the satellite and streaming service -- saw revenue rise 2% to $1.6 billion, while self-pay subscriptions rose by 348,000 in the year to end 2022 with 32.4 million, a record high number, boosted by growth in streaming-only subscribers. Meanwhile, PANDORA and off-platform revenue fell 3% to $560 million.

Full-year guidance is for total revenue of about $9 billion, Adjusted EBITDA of about $2.7 billion, and free cash flow of about $1.05 billion.

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