SiriusXM has continued to add subsribers quickly, sped along
by the recovery in car sales.
According to the NY Times, Sirius reported 25.1 million
subscribers, up 716,000 from the same period last year, and the company
increased its guidance for the full year, saying that it expected to add 1.5
million subscribers and have more than $3.7 billion in revenue. Shares of
Sirius were up a little more than 1 percent in the early afternoon on Thursday.
“The wind has certainly been at our backs with increasing
auto sales, and we expect that to continue for the rest of the year,” James E.
Meyer, the chief executive, said in an conference call with investors and
analysts. Meyer said that there are 54.5
million automobiles in operation with Sirius installed, and that he expected
the number to rise to 100 million by the end of 2017.
Sirius also fared well with two particular measurements that
investors have paid close attention to. Its “churn” rate, a measurement of
customer turnover, has lately hovered around 2 percent, but for the second
quarter it dropped to 1.7 percent, meaning that fewer customers were canceling
subscriptions.
The number of “self-pay” subscriptions — as opposed to those
with trial subscriptions subsidized by automakers — also grew in the second
quarter to a high of 20.3 million, up 9 percent from last year. Subscriptions
to the satellite radio service start at about $15 a month.
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