Despite a Plunge In Pandora Listeners, SiriusXM Quarterly Revenues Hit a Record $2 Billion

SiriusXM has published its earnings report for the second fiscal quarter of 2019.  The figures include a small bump on Sirius subs, and a sharp drop in monthly average users at Pandora.

In the first quarter of 2019 (Q1 2019), the satellite radio giant reached a new milestone, locking down 34.2 million subscribers.  The company’s pro forma revenue jumped 10% to $1.9 billion, up from $1.7 billion over the same quarter last year.  In addition, adjusted EBITDA grew 27% to $567 million.

Overall revenue grew 8% year-over-year to $1.5 billion.  Yet, not everything was good news for the company.

SiriusXM’s net income experienced a sharp 44% decline, totaling $162 million compared to $289 million year-over-year.  The satellite radio giant attributed the steep drop to the completion of its Pandora Media acquisition.

Despite having a new owner, Pandora Radio also continued to bleed listeners.  The digital radio service’s monthly active users (MAUs) declined to 66 million, down from 72.3 million in Q1 2018.  This resulted in total ad-supported listener hours of 3.4 billion in Q1 2019, down from 3.8 billion year-over-year.

Now, in both good news and bad news for investors, SiriusXM has unveiled its Q2 2019 report.

More subscribers and a stronger net profit while missing the mark on user engagement.

In the second fiscal quarter of this year, SiriusXM’s total revenue grew 38% year-over-year to a record $2 billion.

Net income declined to $263 million, down $30 million over the same period last year.  Net income per diluted common share remained the same year-over-year, totaling $0.06.  Overall revenue also grew to over $1.5 billion.  The company attributed the growth to a 3% increase in total subscribers and a 4% increase in SiriusXM’s average revenue per user (ARPU).

The satellite radio company’s gross profit also grew 7% to $944 million.  Total cost of services jumped 7% to $594 million.

Adjusted EBITDA grew 22% to a record $618 million, resulting in an adjusted EBITDA margin of 31.2%.  SiriusXM attributed the increased margin to revenue growth across its combined business with Pandora Radio as well as “cost efficiencies” in subscriber acquisition, revenue share, and royalties.

The satellite radio giant also added a net of 174,000 subscribers.  For the three months ended June 30th, 2019, SiriusXM has over 34.3 million subscribers.  This figure includes more than 29.3 million self-pay subscribers.

Pandora Radio’s advertising revenue also reached a second quarter record of $306 million, up 13% year-over-year.  The parent company attributed the growth to a record second quarter monetization of $80 per thousand hours, growing 17% year-over-year.

Pandora’s total revenue grew 15% to $441 million, largely aided by an 18% increase in subscriber revenue to $135 million.

The digital radio company, however, still hasn’t increased user engagement, a core metric.

While Pandora Radio now has 7 million subscribers, with 6.2 million self-pay subscribers, monthly active users (MAUs) fell from 71.4 million in Q2 2018 to 64.9 million.  Total ad-supported listener hours also fell from 3.86 billion to 3.49 billion.

Total cost of services at Pandora Radio grew 4% to $284 million.  The digital radio company’s gross profit grew 40% year-over-year to $157 million.


Featured image by SiriusXM.