Yahoo Finance SIRIUS XM Q2 Earnings in Line, Revenues Beat; View Raised - Analyst Blog
SIRIUS XM Holdings Inc. SIRI reported second-quarter 2015 financial numbers wherein the bottom line was at par with the Zacks Consensus Estimate while the top line surpassed the same. The company registered record-high adjusted EBITDA in the quarter. SIRIUS XM also raised the revenue, free cash flow, adjusted EBITDA and subscriber gain guidance for 2015.
Quarterly GAAP net income came in at $102.8 million or 2 cents per share compared with $120 million or 2 cents in the prior-year quarter. However, adjusted earnings of 3 cents per share were in line with the Zacks Consensus Estimate. Meanwhile, total revenue of $1,123.2 million exhibited annualized growth of 8.5% and was also above the Zacks Consensus Estimate of $1,119 million.
Sirius XM Radio Inc. - Earnings Surprise | FindTheBest
Quarterly total operating expenses stood at $903.8 million, up 20.4% year over year. Operating income, in the reported quarter, was around $219.4 million, highlighting a decline of 22.9% from the year-earlier quarter. SIRIUS XM posted record second-quarter adjusted EBITDA of growth of $415 million, up 12% year over year.
At the end of the first six months of 2015, SIRIUS XM had $712.3 million of cash from operations compared with $592.1 million at 2014-end. Quarterly free cash flow in the same period stood at $651.1 million against $533.7 million in the year-ago quarter.
At the end of the quarter under review, SIRIUS XM had nearly $294.1 million of cash and cash equivalents and $5,108.3 million of outstanding debt compared with $147.7 million and $4,493.9 million, respectively, at the end of 2014. The debt-to-capitalization ratio stood at 0.91 against 0.77 at the end of 2014.
Segment Wise Results
Quarterly Subscriber revenues totaled $940.1 million, up 7% year over year. Advertising revenues stood at $28.8 million, up 12.9% year over year. Equipment revenues were $29.3 million, up 6.2% year over year. Other revenues grossed $125 million, up 20% year over year.
Subscriber Statistics
In the second quarter of 2015, SIRIUS XM added 692,000 subscribers which reached the company’s total subscriber tally to 28,434,000 as of Jun 30, 2015, up 8.1% year over year. Payment category wise, Self-Pay subscriber count totaled 23,436,000 (up 8.3% year over year) while the Paid Promotional customer count stood at 4,999,000 (up 7.1% year over year).
Important Operating Metrics
Despite intensifying competition from Google Inc. GOOG, Apple AAPL and Pandora Inc. P, SIRIUS XM’s average revenue per user stood at $12.42 in the quarter compared with $12.36 in the year-ago quarter. Average self-pay monthly churn rate was 1.6% against 1.8% in the prior-year quarter. New Vehicle Customer Conversion rate came in at 41% versus 42% in the year-earlier quarter. Subscriber acquisition cost stood at $32 compared with $33 in the year-ago quarter.
Financial Outlook
Management expects full-year 2015 revenues at around $4.5 billion while adjusted EBITDA is projected to be roughly $1.62 billion. Meanwhile, free cash flow will likely stand at $1.3 billion. Also, the company estimates an addition of 1.6 million new subscribers in 2015.
SIRIUS XM currently carries a Zacks Rank #3 (Hold).
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