Sirius (SIRI) Beats Q3 Views on Steady Sub Adds; ARPU Lower on Discounts
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Price: $3.58 +0.85%
Revenue Growth %: +11.4%
Financial Fact:
Income before income taxes: 202.64M
Today's EPS Names:
ANF, DXLG, FL, More
Revenue Growth %: +11.4%
Financial Fact:
Income before income taxes: 202.64M
Today's EPS Names:
ANF, DXLG, FL, More
Trade SIRI Now!
Shares of Sirius XM (Nasdaq: SIRI) are trading lower Tuesday morning following third-quarter operating results.
Revenue, as adjusted, rose 5.9 percent from $722.54 million during the same quarter last year to $764.84 million.
Net income jumped 54 percent to $104.19 million, or 2 cents per diluted share.
The Street was looking for revenue of $764.2 million and earnings of 1 cent per share.
Sirius added 333,683 net subs, bringing the total to 21.35 million at the end of the quarter, up 7.5 percent over the same period last year. Churn was flat at 1.9 percent, and conversion rate fell from 48.1 percent to 44.4 percent.
ARPU moved slightly lower from $11.81 to $11.66. Sirius attributes the decline primarily to "an increase in subscription discounts offered through customer acquisition and retention programs, the number of subscribers on OEM paid promotional plans and the decrease in the U.S. Music Royalty Fee, partially offset by an increase in sales of its premium services, including Premier packages, data services and streaming."
"With the seasonally strong cash flow of the fourth quarter ahead of us, declining capital expenditures, the anticipated substantial 2012 growth in EBITDA and free cash flow, and declining debt maturities in 2012 our liquidity will continue to rapidly improve," commented CFO David Frear.
Looking ahead, Sirius reaffirmed previously issued fiscal 2011 and 2012 guidance.
Shares are nearly 3 percent lower Tuesday ahead of the bell.
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Revenue, as adjusted, rose 5.9 percent from $722.54 million during the same quarter last year to $764.84 million.
Net income jumped 54 percent to $104.19 million, or 2 cents per diluted share.
The Street was looking for revenue of $764.2 million and earnings of 1 cent per share.
Sirius added 333,683 net subs, bringing the total to 21.35 million at the end of the quarter, up 7.5 percent over the same period last year. Churn was flat at 1.9 percent, and conversion rate fell from 48.1 percent to 44.4 percent.
ARPU moved slightly lower from $11.81 to $11.66. Sirius attributes the decline primarily to "an increase in subscription discounts offered through customer acquisition and retention programs, the number of subscribers on OEM paid promotional plans and the decrease in the U.S. Music Royalty Fee, partially offset by an increase in sales of its premium services, including Premier packages, data services and streaming."
"With the seasonally strong cash flow of the fourth quarter ahead of us, declining capital expenditures, the anticipated substantial 2012 growth in EBITDA and free cash flow, and declining debt maturities in 2012 our liquidity will continue to rapidly improve," commented CFO David Frear.
Looking ahead, Sirius reaffirmed previously issued fiscal 2011 and 2012 guidance.
Shares are nearly 3 percent lower Tuesday ahead of the bell.
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