Sirius XM Q2 Profit Declines On Higher Expenses, Revenues Up

(RTTNews) - Satellite radio services provider Sirius XM Holdings Inc. (SIRI) Tuesday reported a decline in second-quarter profit, on higher expenses. Revenue climbed 10 percent as subscriber additions increased from last year. The firm also raised its outlook for 2014.

For the second quarter, the company's net income declined to $119.96 million from $125.52 million in the prior year. Earnings per share remained unchanged at $0.02.

On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $0.02 for the quarter. Analysts' estimates typically exclude special items.

Total revenue climbed 10 percent to $1.04 billion from $940.11 million in the same quarter last year. Analysts expected revenue of $1.02 billion for the quarter.

Total operating expenses advanced to $750.77 million from $672.37 million a year ago.

Average revenue per user or ARPU, was $12.36, compared to $12.28 in the prior-year quarter.

Jim Meyer, chief executive officer said, "SiriusXM once again posted outstanding results in the second quarter by adding 475,000 total net new subscribers, including 380,000 net new self-pay subscribers. We set new records for trial conversions to self-pay, adjusted EBITDA and adjusted EBITDA margin in the quarter..."

Net subscriber additions in the second quarter were 475,472, and subscribers exceeded 26.3 million. Total paid subscriber base increased 5 percent from last year. Self-pay net subscriber additions were 379,711, and the self-pay subscriber base grew 7 percent from the second quarter of 2013.

SiriusXM reaffirmed its previously issued 2014 guidance for net subscriber additions and increased its guidance for revenue, adjusted EBITDA, and free cash flow.

The company now expects fiscal 2014 revenue of about $4.1 billion, up from $4 billion projected earlier. Analysts expect the company to report fiscal 2014 revenue of $4.13 billion.

On an adjusted basis, earnings before interest, tax, depreciation and amortization or EBITDA is now anticipated to be around $1.425 billion, compared to the earlier EBITDA view of about $1.38 billion. The firm sees net subscriber additions of approximately 1.25 million.

Sirius XM shares are currently trading at $3.465, up 2.51 percent.