SiriusXM Reports Subscribers, Revenues Up In Q3

Mel Karmazin

SIRIUS XM RADIO has reported third-quarter 2011 financial results, including 21.3 million subscribers, net subscriber additions of 334,000, revenue of $763 million, up 6% over third quarter 2010 revenue of $718 million, and adjusted EBITDA of $197 million, up 16% from $170 million in the third quarter of 2010.

"In the third quarter, we once again delivered record levels of subscribers, revenue and adjusted EBITDA, and we are confident our positive momentum will continue in the fourth quarter. This has been an exciting year for SIRIUSXM, but I'm even more excited by the many opportunities awaiting us in 2012. We plan to accelerate our revenue and adjusted EBITDA growth, deliver more free cash flow than ever before, and we are thrilled to offer exciting new content and innovations to our existing and future subscribers," said CEO MEL KARMAZIN.

Highlights from the quarter include:

* Free cash flow improves. Free cash flow in the third quarter of 2011 was $75 million, a 22% improvement from the $62 million reported in the third quarter of 2010. 

* Subscribers reach new record high. Subscribers increased by 7% year-over-year to 21,349,858 at SEPTEMBER 30th, 2011. Self-pay net additions in the third quarter of 2011 were 364,004, up 41% from 258,105 in the third quarter of 2010, and the self-pay subscriber base reached an all-time high of 17,534,310, up 7% year-over-year. 

* Churn stable. Average self-pay monthly churn was 1.9% in the third quarter of 2011, in line with 1.9% in the second quarter of 2011 and the third quarter of 2010. 

* Cost-Efficient Growth. Total cash operating expenses increased only 2.7% over the prior year quarter, while revenues increased 6% over the prior year quarter, resulting in an expansion of our adjusted EBITDA margin to a record 25.8%.

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