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Sirius XM Reports Q3 Subscriber Momentum; Boosts Dividend By 10%

  • Sirius XM Holdings Inc (NASDAQ: SIRI) reported third-quarter FY22 revenue growth of 4% year-on-year to $2.28 billion, beating the consensus of $2.27 billion.

  • Subscriber revenue expanded 4.1% Y/Y to $1.73 billion. Advertising revenue increased 1.3% Y/Y to $457 million.

  • SiriusXM self-pay subscribers increased by 187,000, reaching 32.2 million total subscribers. Self-pay monthly churn remained at 1.5%.

  • SiriusXM segment revenue grew 5% Y/Y to $1.7 billion as ARPU rose 6% to $15.72 and self-pay subscribers improved by 1%. The gross margin expanded by 100 bps to 6%.

  • Pandora segment advertising revenue increased 1% Y/Y to $407 million, boosted by solid monetization. The gross margin contracted by 500 bps to 32% due to subscriber losses.

  • Adjusted EPS of $0.07 missed the consensus of $0.08.

  • Sirius generated $329 million in free cash flow and held $39 million in cash and equivalents.

  • Dividend: The board declared a quarterly cash dividend of $0.0242 per share, up 10% Q/Q.

  • CEO Jennifer Witz said, "This quarter, we focused on enhancing the listener experience and expanding our unparalleled stable of programming and talent to continue providing our subscribers with the best in audio, both in-car and in the SXM App."

  • "From live sports and election coverage to exclusive artist channels and live Small Stage performances, we are thrilled to offer a diverse and differentiated content slate paired with technology that makes it easier than ever to discover new favorites."

  • Outlook: Sirius XM was on track to accomplish FY22 revenue guidance of $9 billion, slightly below the consensus of $9.04 billion.

  • Price Action: SIRI shares traded higher by 2.57% at $6.20 on the last check Tuesday.

 

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