Sirius XM Revenue, Subscribers Rise in Second Quarter
UPDATED: The satellite radio company, led by CEO Mel Karmazin, added 622,000 subscribers to hit a new user record and boosted its full-year growth guidance.
Satellite radio company Sirius XM on Tuesday reported improved second-quarter financials as it continued to add subscribers.
The company, led by CEO Mel Karmazin, grew its user base by 622,000, ending June with a company record of 22.9 million subscribers. It had added 452,000 in the year-ago period. Barclays Capital analyst James Ratcliffe had forecast 463,000 net adds for the second quarter.
"Sirius XM continued its exceptional performance in the second quarter, adding over 600,000 subscribers, which represents a post-merger record, despite the mixed macroeconomic trends," Karmazin said. The company increased its full-year subscriber growth guidance to a figure "approaching 1.6 million" - its second hike in the forecast this year.
Sirius posted a quarterly profit of $3.1 billion when including a $3 billion one-time tax income gain. compared with $173,319 in the year-ago period. Revenue rose 13 percent to a record $838 million.
Sirius also increased its forecast for adjusted operating cash flow this year. Karmazin said that "indicates strong confidence in our ability to continue to execute in the back half of the year."