Sirius XM's Subscribers Grow 600,000 in Second Quarter
On Monday, Sirius XM announced yet another feat that takes the radio business to a new level: the company added over 600,000 net subscribers in the second quarter alone. Music and radio-based stocks have seen a positive flux in recent months, with Pandora (NYSE: P) booming throughout 2012 and Sirius XM (NASDAQ: SIRI) consistently enjoying positive quarters.
Measured by revenue, Sirius XM is the largest radio broadcaster with more than 22 million subscribers under its belt. The company has had no problem strengthening its hold on its current position, as Sirius XM is set to report an increase of 622,042 in customer subscriptions, along with positive revenue growth.
Sirius XM pumped up its full year 2012 subscriber and revenue guidance this morning, expecting customers to total around 1.6 million, with revenues approaching $3.4 billion.
At a time when Liberty Media (NASDAQ: LMCA) has been striving to gain control over radio, Sirius XM appears to not be sweating the small stuff.
"While we have suggested in the past that a [Reverse Morris Trust] is less likely than full consolidation of Sirius by Liberty, we are increasingly agnostic about the outcome. Our analysis suggests Sirius can appreciate significantly from current levels under any scenario as long as Sirius begins to use its free cash flow and balance sheet capacity to retire shares," Citi said last month.
Clearly the company has had no problem escalating in subscription numbers, as well as upping its outlook for the future. Reporting such boosted confidence in guidance this morning only further demonstrates the lack of mind Sirius XM is paying to those who are vying to take the company over.
Sirius closed Friday at $2.05, trading up around 4.5% Monday morning near $2.14.
Latest Ratings for SIRI
|Apr 2017||Morgan Stanley||Downgrades||Equal-Weight||Underweight|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.