SiriusXM beats profit expectations
February 2, 2024
By Chris Forrester
Pay-radio broadcaster SiriusXM’s Q4 profits were at $352 million (€323.1m), just down on the same period in 2022 which were $365 million. Revenues were slightly ahead of expectations at $2.29 billion ($2.28 billion the previous year). Earnings per share were up 1 cent at $0.09 and better than analyst’s expectations.
SiriusXM also reported that ARPU from subscribers had fallen slightly.
However, SiriusXM also owns the Pandora music streaming site and is increasingly focussing on that aspect of its business.
“The challenge to 2024 revenue comes from roughly level subscriber numbers and a modestly softer ARPU, partially from a more diverse subscriber base with more streaming-only subscriptions,” CEO Jennifer Witz told analysts on a conference call.
Last November SiriusXM launched its new streaming app in a bid to secure the loyalty of younger consumers. Witz said while these subscribers yield lower revenue than those enrolled in other plans, they will not damage in-car subscriptions since streaming subscribers typically are not listening in their vehicles.
“We are really excited about the $9.99 price point on our streaming-only plan and believe that it enables us to really address a broader market,” Witz said. “We’re only about seven weeks in, but we’re very excited about [the service] and the product market fit it provides these growth audiences,” Witz added.