SiriusXM has posted a record third quarter revenue of $1.5 billion, a year-on-year increase of 6%.
The company’s net income totaled $343 million in Q3 2018, representing year-on-year growth of 24%.
According to SiriusXM, its Q3 revenue growth of 6% was driven by a 5% increase in subscribers and an increase of nearly 1% – after ‘an accounting change’ – in average revenue per user (ARPU) to $13.48.
SiriusXM added 298,000 new paid subscribers in Q3 2018 to end the period with approximately 28.5 million ‘self-pay’ subscribers, with its total subscriber base now at 33.7m
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the third quarter reached a record $589 million, up 7% over Q3 2017, which SirisXM attributes to lower subscriber acquisition costs and fixed operating expenses as a percentage of revenue.
The company’s record adjusted EBITDA margin of 40.1% in the quarter is also the first time the Company has topped 40%.
“SiriusXM’s standout third quarter saw continued strength in subscriber additions.”
Jim Meyer, SiriusXM
Jim Meyer, Chief Executive Officer, SiriusXM said: “SiriusXM’s standout third quarter saw continued strength in subscriber additions and churn performance while adjusted EBITDA reached a quarterly record-high $589 million.
“Our revenue growth, adjusted for the change in generally accepted accounting principles that was effective January 1st, totaled 8% in the quarter.
“In addition to our operational excellence, we were thrilled this quarter to announce an agreement to acquire Pandora Media, which we expect to close in the first quarter of 2019. With the end of the year in sight, we are increasing our full-year guidance for self-pay net additions, revenue and adjusted EBITDA.
“We have a relentless focus on creating and curating content our subscribers will love — our limited-run Dave Matthews Band Radio was a perfect example. We also presented fiery live performances just for subscribers, like our recent show by The Killers in New York.
“We’ve added provocative talent in talk and sports, with a daily show from CNN’s Chris Cuomo, a new show from Hall of Famer Reggie Jackson, the return of Brett Favre’s popular show, and a new program highlighting women in sports hosted by journalist Christine Brennan and retired tennis pro Rennae Stubbs.”
“Our strong capitalization and ample liquidity provide us flexibility to continue investing in our business.”
David Frear, SiriusXM
David Frear (pictured), Chief Financial Officer, SiriusXM added: “Share repurchases in the third quarter were $334 million, totaling approximately 48 million shares, in addition to the nearly $50 million in dividends we paid to stockholders.
“At the end of the quarter, our debt to adjusted EBITDA was just 3.0 times, and we had cash on hand of approximately $46 million and undrawn revolver capacity of $1.63 billion.
“On October 9, 2018, we announced a 10% increase in our quarterly dividend payable in November, and our strong capitalization and ample liquidity provide us flexibility to continue investing in our business, make strategic investments and further return capital to stockholders.”Music Business Worldwide
