Sirius XM: We’re Adding Listeners at Record Pace
Sirius XM (NASDAQ:SIRI) has announced that it will once again adjust its 2012 guidance for net subscriber additions as the company continues to gain listeners at a record rate.
Chief Executive Mel Karmazin broke the news at Liberty Media’s (NASDAQ:LMCA) annual investor day, explaining that the satcaster now expects net subscriber additions to hit 1.8 million in 2012. The adjustment comes on the heels of the company’s strong third quarter which saw 445,921 new customers join Sirius, 34 percent more additions than in the third quarter of 2011.
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Sirius – which closed its third quarter with 23,365,383 subscribers – had previously set guidance marks for 2012 at 1.6 million new customers, but is happy to be adjusting that figure.
“These strong net additions produced our best third quarter since the merger…[and with] continuing growth in auto sales, we will significantly exceed our previous guidance of 1.6 million, marking our third increase in subscriber guidance this year and putting us on track for record post-merger net additions,” said Karmazin.
The merger Karmazin mentions is with Liberty Media, which currently owns 49.5 percent of Sirius and has plans in the works to soon take control of the company. Liberty filed a de jure application with the Federal Communications Commission (FCC) and plans to take the reigns when it is approved.
Despite the looming takeover and what changes it might bring for Sirius, Karmazin spoke confidently about the future of satellite radio and the undoubted advantages it holds over more traditional and Internet forms.
“It is our belief that terrestrial radio will probably continue to decrease over the next five years – satellite radio will continue to grow,” he said. He credited the satellite’s subscription model as one of its major advantages.
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