US pay-radio operator SiriusXM reported better than expected Q3 subscriber and revenue numbers on October 27th, and said it would shortly start paying a dividend to shareholders. SiriusXM also told analysts that it would start a Howard Stern video service featuring notorious ‘shock-jock’ Stern.
SiriusXM, controlled by John Malone’s Liberty Media, added 345,000 net new subscribers during the three months and a 16 per cent uplift in earnings to $194 million. It ended the quarter-year with almost 31 million subscribers. Overall revenues for Q3 were $1.3 billion.
The initial dividend is 1 cent/share, per quarter-year but this will likely grow to 4c annually. “SiriusXM’s performance in the third quarter was exemplary,” said CEO Jim Meyer. “Our business is operating more efficiently than ever before, and we are pleased to increase our revenue and adjusted EBITDA guidance for the second time this year.”
As to moving into video, Meyer said the Howard Stern launch date was not yet fixed but was likely for 2017.
“We expect to continue strong capital returns to stockholders while making strategic investments in technology, content, and new satellite infrastructure,” noted CFO David Frear.