Sirius XM subscription numbers keep going up, and up, and up.
Sirius XM posted their 3Q 2016 earnings today. As expected, and in great news for the company, Sirius XM posted stronger-than-expected subscriber growth for its third-quarter. This led the company to raise their full year subscriber guidance.
Along with strong subscriber growth, SiriusXM reported record quarterly revenue of $1.3 billion, up 9% from last year during the same period. Their net income totaled $194 million, up 16% from last year’s $167 million. The net income per diluted common share was $0.04, up 1 cent from last year. Their adjusted EBITDA (Earnings Before Interests, Taxes, Depreciation, and Amortization) also grew 10% in the third quarter of 2016 to $492 million.
CEO Jim Meyer said,
“SiriusXM’s performance in the third quarter was exemplary. We grew self-pay subscribers by 385,000 and turned in record quarterly high levels of revenue and adjusted EBITDA. Additionally, we attained our highest-ever ARPU and adjusted EBITDA margin and lowest-ever SAC per installation and customer service cost per subscriber. In short, our business is operating more efficiently than ever before, and we are pleased to increase our revenue and adjusted EBITDA guidance for the second time this year.”
The company now aims to reach 2 million new subscribers for the entire year. Jim Meyer continued,
“With subscribers at an all-time high of nearly 29 million and record adjusted EBITDA and adjusted EBITDA margin, our third quarter was one of the strongest performances in our company’s history. We are confident of our continued success in the fourth quarter, and we are increasing our guidance for self-pay and total net subscriber additions, revenue, and adjusted EBITDA.”
This marks the first time the company was able to meet analysts’ expectations. In the four previous quarters, SiriusXM missed Zacks Consesus estimates. NASDAQ.com estimated that Sirius would once again miss these estimates. The company’s $1.3 billion in revenue also surpassed the consensus estimates of $1.26 billion.
As of writing, the company’s stock price has dropped 3.89%, down $0.17 from its opening price of $4.27. The company closed yesterday at $4.24