Market Overview

Investors Shrug Off Sirius XM In-Line Q4, Impressive Subscriber Adds


Shares of Sirius XM Holdings Inc. (NASDAQ: SIRI) were trading lower by 0.5 percent early Tuesday morning after the company reported its fourth quarter results.

Sirius XM earned $0.03 per share in the fourth quarter on revenue of $1.2 billion. Wall Street analysts were expecting the company to earn $0.03 per share on revenue of $1.19 billion.

Sirius XM earned $0.09 per share for the full year fiscal 2015 on revenue of $4.6 billion.

Net income for the fourth quarter dipped to $135 million from $143 million in the same quarter a year ago, but rose to $510 million for the full year fiscal 2015 from $493 million in the full year fiscal 2014.

Adjusted EBITDA for the fourth quarter rose 4 percent to $396 million from a year ago, while Adjusted EBITDA for the full fiscal year rose 13 percent to $1.66 billion.

SiriusXM added 2.283 million net new subscribers throughout 2015, marking the company's highest growth rate and represents a 30 percent increase from the 1.752 million net new subscribers the company added a year ago.

"We produced our best subscriber growth in eight years, taking our subscriber base to approximately 29.6 million. The company also set records in 2015 for revenue, adjusted EBITDA, and free cash flow. We are investing in new marketing capabilities, our connected vehicle business, new satellites, a next generation wideband chipset and, most importantly, our world-class and exclusive content. We expect that these investments, together with our long-standing focus on execution, will help us continue our long history of strong, profitable growth," said Jim Meyer, Chief Executive Officer, SiriusXM.

Looking forward to the full fiscal year 2016, the company is guiding its revenue to be $4.9 billion (short of the $4.93 billion analysts were already estimating), Adjusted EBITDA of around $1.78 billion and net subscriber adds of around 1.4 million.


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