Pay-radio broadcaster SiriusXM has exceeded its own guidance for its 2016 expectations in terms of subscribers.
However, comments from SiriusXM’s CFO David Frear, speaking at a Citigroup financial conference on January 5th, said he had “doubts” as to any possible move on music streaming site Pandora. Shares in Pandora had moved ahead during December on prospects of SiriusXM buying Pandora. Frear told analysts that this was “not very likely”.
SiriusXM finished 2016 with more than 31.3 million subscribers, and a net gain on the previous year of above 1.7 million subs. Its guidance for the year was to add 1.7 million subs, and to this total must be added its self-pay numbers which it had guided would be 1.6 million, and ended the year at 1.66 million.
The company said it expects to meet or exceed its 2016 guidance for revenue, adjusted EBITDA and free cash flow. “SiriusXM had an incredible 2016. In addition to topping 31 million subscribers, our business is running efficiently and we are attaining records in revenue, adjusted EBITDA, adjusted EBITDA margin, and free cash flow. Our relationships with our OEMs have never been stronger and demand for our product continues to grow,” said Jim Meyer, SiriusXM’s CEO.
For 2017 SiriusXM says its additional self-pay subscribers should net out at 1.3 million, and Revenues of about $5.3 billion with free cashflow of some $1.5 billion.
SiriusXM will declare its complete results for 2016 early in February.