Sirius XM Reveals Higher Expectations on Strong 2nd Quarter
SiriusXM Radio investors were giddy Tuesday as the world leader in satellite radio reported stronger-than-expected subscriber and revenue growth for its second quarter. The company also raised its expectations for both subscriber and revenue growth for the full current fiscal year. The report was mostly positive despite a decline in quarterly earnings that was caused by a pre-tax charge of $108 million which the company paid out as part of a settlement of charges of unpaid royalties for older music. The company still earned $103 million in the quarter, after the charge, compared to a $120 million profit in the second quarter of 2014.
According to Sirius XM’s quarterly numbers, total revenue from the April to June period came in at $1.12 billion, an increase of 8 percent from the year-ago period. The company added 692,000 subscribers in the quarter, up 46 percent from the 475,000 new subscribers the company saw last year at the same time. The company now has a total of 28.4 million subscribers. Sirius now expects to increase its total subscribers by 1.8 million this year, increasing previously announced guidance calling for 1.4 million new subscribers. The company also raised its guidance for ful year revenue, earnings and cash flow.