Sirius XM Profit Meets Expectations, Backs 2016 Guidance
February 02 2016 - 7:25AM
Dow Jones News
By Joshua Jamerson
Sirius XM Holdings Inc. reported its profit slipped 6% in the
fourth quarter on higher expenses, driven in part by increased
investments.
Jim Meyer, chief executive of Sirius XM, said the company is
investing in new marketing capabilities, its connected vehicle
business, new satellites, a next generation wideband chipset and
exclusive content that should drive future results.
Sirius XM recently said it had ended 2015 with 29.6 million
subscribers, or 2.3 million more than 2014, topping its projection
of 2 million new subscribers. For 2016, Sirius XM previously said
it expects to add about 1.4 million subscribers. That would give
the company a total of about 31 million subscribers.
Monthly churn, or the rate at which subscribers left, rose to
1.9% in the quarter ended Dec. 31, from 1.8% a year ago.
Overall, Sirius XM's profit fell to $134.6 million from $143.1
million. On a per-share basis, earnings were flat at 3 cents a
share, helped in part by the company's stock-repurchase program,
which lowered Sirius XM's number of diluted shares outstanding by
about 7.5% from a year ago.
Revenue grew 10% to $1.2 billion.
Analysts polled by Thomson Reuters had forecast 3 cents a share
in earnings on $1.2 billion in revenue.
The company backed its previously-issued revenue forecast of
$4.9 billion for 2016.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
February 02, 2016 08:10 ET (13:10 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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