During Wednesday’s conference call with analysts, CEO Jim Meyer said SiriusAM was raising their expectation for the 4Q and for 2014. The expectation are based, in part, on January 1, 2014 increase in the cost of subscriptions.
Based on strong growth year-to-date in revenue and their outlook for the fourth quarter, Meyer said SiriusXM has raised our 2013 revenue guidance to approximately $3.77 billion. They've also just issued our initial outlook for 2014, showing continued revenue growth and sharp growth in adjusted EBITDA and margins.
In 2014, SiriusXM anticipates total revenue of over $4 billion and adjusted EBITDA of approximately $1.38 billion, which works out to a 21% growth and adjusted EBITDA versus this year's guidance and an expansion in our adjusted EBITDA margin to 34.5%.
Meyer added SiriusXM has decided to increase the monthly price of their core service offering by $0.50 to $14.99 per month. Meyer advises to note that many of SiriusXM plans such as our pay auto trials, our all access plan, multi-radio subs and others will not see any change in pricing.
Meyer said, “While changing prices is a difficult decision, particularly on a competitive audio entertainment market, we are confident that our subscribers see significant value on our service and that this modest change will not significantly impact retention next year.”