SiriusXM Grows Earnings, Subscribers in First Quarter, Raises Guidance
The satellite radio giant, led by CEO Jim Meyer, is controlled by John Malone's Liberty Media.
SiriusXM Radio on Tuesday reported improved first-quarter financials as it continued to grow its subscriber base.
The satellite radio giant, led by CEO Jim Meyer and controlled by John Malone's Liberty Media, added 431,000 net new subscribers in the period, up from 267,000 in the year-ago period. The company ended March with a total of 27.74 million subscribers.
Sirius, the radio home of Howard Stern, whose contract expires at the end of the year, posted quarterly earnings of $106 million, up 12 percent compared with the $94 million recorded in the year-ago period. Revenue rose 8 percent to $1.08 billion.
The company increased its full-year 2015 guidance for subscribers and revenue based on the results.
Said Meyer: "The year is off to a fantastic start at SiriusXM. We are increasing our subscriber guidance to approximately 1.4 million net additions and revenue guidance to approximately $4.47 billion after reporting our best first quarter for self-pay subscriber additions since 2008."
He added: "Our results demonstrate that SiriusXM's bundle of live news and sports, exclusive talk and comedy, and curated commercial-free music is resonating with more and more consumers every day."
Added Meyer: "This month, we have aired great live performances from the Coachella music festival and exclusive programming from the Masters golf tournament. Later this year, we will introduce new channels led by Andy Cohen and Pitbull. We continually seek to add new and exclusive talent, shows, and channels that speak to our growing base of paying subscribers."
On Tuesday's earnings conference call, Meyer lauded Sirius' Today Show channel as being a "hit" with listeners and said fantasy sports content has also gained traction. "We will anchor our future by investing in content," the CEO also said.
Asked about competitive impact from music streaming service Spotify, Meyer said that the money that consumers spend on Spotify’s premium $10 per-month service is "coming out of the downloaded and physical media business as opposed to the radio business."