Sirius profits up but subs stall
Profits at Sirius XM Radio grew by more than 50 per cent in the third quarter, and its subscription numbers hit a record of 21.3 million but analyst were disappointment with Sirius’s subscription growth rate saw the stock fall over three per cent.
For the three months ended September 30th, Sirius had $763 million in revenue, up 6.3 per cent from the same period last year, and $104 million in net income. But the 334,000 new subscriptions added in the quarter fell short of expectations of 350,000 to 400,000.
Next year Sirius will raise its base subscription rate by 12 per cent, to $14.49 a month. Some investors worry that the change could further slow growth
The company did not change its guidance numbers for 2011. It is expecting to add a total of 1.6 million subscribers for the year, and is projecting $3 billion in revenue. So far this year it has gained 1.16 new subscribers and reported $2.2 billion in revenue.