Sirius XM: Growth is Good!
Sirius XM Radio (NASDAQ:SIRI) raised its full-fiscal revenue and subscriber growth guidance after another quarter of listener expansion. The satellite-radio now expects revenue of $3.4 billion for the year, up from the $3.3 billion projected in May. Analysts were expecting full-year revenue of $3.36 billion. The company also expects to add 1.6 million net new subscribers in 2012, up from an earlier prediction of 1.5 million.
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Sirius XM (NASDAQ:SIRI), due to report second-quarter earnings early next month, said in a release on Monday that it had continued its trend of expanding its subscriber base over the past few months despite growing competition from rivals such as Pandora (NYSE:P) and Spotify. The company added 622,042 net subscribers in the second quarter, a growth of 38 percent from the same period last year, when it had added 452,147. Already this year, the radio has added more than 1 million net subscribers and had a total of 22.9 million at the end of June.
“While we continue to be conservative in the face of a weak US economic outlook, customers continue to embrace our unparalleled programming lineup, allowing us to raise subscriber guidance for the second time this year,” chief executive Mel Karmazin said in a statement.
Sirius XM (NASDAQ:SIRI), which has been in a takeover battle with Liberty Media (NASDAQ:LMCA), has cut down on costs over the last few quarters, but has still managed to add paying listeners. In the first quarter, the company’s earnings grew 38 percent on the back of new self-paying customers. It also received a boost from Moody’s, with the bond credit rating business raising its outlook on the company last month from stable to positive. Shares were up 2 percent at $2.08 in afternoon trading on Monday.