SiriusXM Q4 revenue up 4%
February 3, 2023
By Chris Forrester
US pay-radio operator SiriusXM has announced its Q4 and full-year 2022 operating and financial results, including revenue of $2.28 billion (€2.09bn) and $9 billion, respectively. SiriusXM’s revenue was flat in the quarter compared to the prior year period, and increased by 4 per cent in 2022 compared to the prior year – this dragged down the overall year’s numbers by $10 million in net revenue.
SiriusXM, controlled by Liberty Media, recorded net income of $365 million and $1.21 billion in the fourth quarter and full-year 2022, respectively, compared to $318 million and $1.31 billion in the prior year, respectively.
SiriusXM ended 2022 with 32.4 million self-pay subscribers, an increase of 348,000 for the year, aided by a growing base of streaming-only subscribers. Paid promotional subscribers decreased by 76,000 for the year, reflecting impacts of contractual changes with certain automakers and reduced new vehicle inventories and sales. Self-pay monthly churn of 1.5 per cent for the fourth quarter and year remained at record low levels.
SiriusXM total revenue reached $6.9 billion in 2022, a 4 per cent increase compared to 2021. This growth was driven by an $0.87 increase in average revenue per user (ARPU), up 6 per cent year-over-year, resulting in a record ARPU of $15.63. SiriusXM subscriber revenue climbed 5 per cent, partially offset by a decrease in paid promotional subscribers, and advertising revenue grew 4 per cent.
During Q4 SiriusXM launched a free beta version in Lucid electric vehicles with hundreds of SiriusXM channels and features like SiriusXM’s Pandora Stations, on-demand content and podcasts. The full SiriusXM experience is expected to become accessible to all Lucid drivers through an over-the-air update later this year. SiriusXM also released an updated version of the SXM App for iOS and Android devices that introduced a refreshed design experience to enhance navigation and streamline content discovery with expanded personalisation features for subscribers. Similar improvements were also made to the SXM App on Apple CarPlay and Android Auto.
“2022 was a strong year for SiriusXM, as we continued to focus on bringing consumers the best in audio entertainment both in-car and on the go, reaching record high revenue and record low churn,” said Jennifer Witz, CEO. “Our strong operating and financial performance in 2022 are a testament to our resilient business model and growing contribution from streaming, which helped us deliver 348,000 net new self-pay subscribers. In 2023, we expect SiriusXM to deliver strong operating performance and generate significant cash, even as we face a challenging economic environment and continue to make material investments in our technology infrastructure,” said SiriusXM.
“SiriusXM met all of its financial guidance in 2022 – a notable accomplishment in a tough year. We believe our new 2023 financial guidance reflects our current view of the business and industry trends,” added Sean Sullivan, CFO. “While we are not issuing subscriber guidance today, we anticipate modestly negative self-pay net adds for the year as economic and demand uncertainty persists, auto sales remain soft, and we reduce marketing ahead of our planned launch of a new streaming experience later this year.”