Media

SIRIUS XM Keeps Growing (SIRI)

SIRIUS XM Radio Inc. (NASDAQ: SIRI) is trading higher after its earnings report this Wednesday morning.  The king and monopoly of satellite radio reported a 16% gain in revenues to $705.6 million, a 17% gain in EBITDA of $154.3 million, and it earned $15.3 million on an adjusted basis (earnings per share of $0.00 due to high share count). Thomson Reuters had estimates at $0.00 EPS and $691.3 million in revenues.  The second quarter generated free cash flow of $108.3 million versus $12.7 million a year ago.

SIRIUS also ended the quarter with 19,527,448 subscribers, a record and a gain of 1.1 million from a year ago after Q2’s net subscriber additions were 583,249. Average revenue per subscriber was up 11% to $11.81 and the self-pay monthly churn rate was down 0.2 points to 1.8%.  Gross additions rose 46% while deactivations fell 8%.

Mel Karmazin is again raising guidance for 2010.  He expects SIRIUS to generate nearly $2.8 billion in revenue, approximately $575 million in adjusted EBITDA and expects free cash flow of nearly $150 million.  SIRIUS XM had already increased its guidance for net subscriber adds to right at 1.1 million for 2010.

Shares are up 4% at $1.05 after closing at $1.01 yesterday, and there are almost 250,000 shares traded even at the 8:00 AM read.  The 52-week range is $0.46 to $1.25.

JON C. OGG

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.