Sirius (SIRI) Beats Q3 Estimates; Subscriber Adds Grow 334K

November 4, 2010 10:15 AM EDT
Sirius XM Radio Inc. (NASDAQ: SIRI) posted better-than-expected quarterly profit on Thursday as more customers paid for content after promotional period and the company sold more premium content.

The satellite radio provider reported third-quarter earnings of 2 cents per share, beating the analyst estimate of a breakeven period.

Revenue for the company rose 15 percent to $722.5 million, ahead of the market consensus of $719 million.

Sirius said that its subscriber acquisition cost fell 14 percent to $59 from $69 in the period compared to last year.

The company added 334,727 subscribers in the third quarter, as it finished the period with 19.8 million.

"We continued our positive momentum in the third quarter, improved our churn and conversion rates, and attained a record high subscriber count. We delivered record adjusted revenue and adjusted EBITDA, increased our free cash flow, and we are now raising our financial guidance for the full year," said Mel Karmazin, Chief Executive Officer, SIRIUS XM.

Looking forward, the company raises its FY10 adj-EBITDA guidance from about $575 million to about $600 million. Sees adj-sales exceeding $2.8 billion and free cash flow exceeding $150 million.

Shares of Sirius are down 2 cents to $1.55 in early market movement on Thursday. Year-to-date the stock is up 98 cents or 163 percent.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings, Guidance

Related Entities

Mel Karmazin, Earnings