SiriusXM benefits from Pandora
July 31, 2019
By Chris Forrester
Pay-radio operator SiriusXM reported its Q2 numbers with revenues up $2 billion (up 38 percent), allowing it to buy in $898 million of its shares for cancellation.
Its overall revenues were helped by the acquisition of Pandora Media which closed on February 1st this year. Subscribers to SiriusXM Select, its top tier, can now additionally stream Pandora Media’s music, sports, talk and news and entertainment channels.
During Q2 SiriusXM added 290,000 net new self-pay subscribers plus 174,000 conventional subs, taking the overall total of active subs to 34.3 million.
Second quarter revenue of $1.5 billion grew 7 per cent compared to the prior year period. This growth was driven by a 3 per cent increase in total SiriusXM subscribers and 4 per cent growth in SiriusXM’s average revenue per user (ARPU) to $13.83.
On a pro-forma basis, revenue climbed 9 per cent from $1.8 billion in the second quarter of 2018. The Company’s net income totalled $263 million in the second quarter, compared to $293 million in the prior year period.
“Our company produced outstanding financial and operating results once again this quarter, and I’m pleased by the quick progress we’ve made in integrating Pandora. Revenues and adjusted EBITDA each reached records in the period. We’re thrilled with the results in the first half of the year, and we are raising 2019 guidance for revenue and adjusted EBITDA and reiterating our guidance for net subscriber additions and free cash flow,” said Jim Meyer, CEO, SiriusXM.