Sirius Exceeds Revenue Projections
Satellite broadcast service Sirius XM Radio Inc. has posted a Q1 revenue which exceeds Wall Street expectations, mainly driven by a boost in its subscriber base. Sirius has been in the news lately over the lawsuit Howard Stern had brought against the company regarding 4 stock options worth $75 million a piece, which the DJ contended he was owed for building upon the platform’s user base. A New York judge threw the case out with prejudice, meaning that Stern couldn’t file another similar lawsuit. Stern has filed an appeal of the ruling.
Sirius XM’s Q1 revenue was $805 million, up from $724 million in Q1, 2011, exceeding analyst estimations of $803.83. Stocks were up $.02 per share, doubling the penny increase of the previous year. Sirius CEO Mel Karmazin states, “Sirius XM is starting the year with tremendous operational momentum. We grew subscribers faster than any first quarter since our 2008 merger of Sirius and XM, and we improved our self-pay monthly churn rate to 1.9% despite implementing a price increase at the beginning of the year.” Sirius predicts sales of $3.3 billion for the fiscal year, while analysts are predicting $3.359 billion.
Regarding the Sirius user base, there were 299,348 new subscribers in Q1, bringing the total to 22.3 million, an all-time high – regardless of the first price increase in history, earlier in the year. Sirius shares are up 1.55%, presently at $2.29.
In related news, it was just reported that Sirius employee/claimant Howard Stern will be replacing Piers Morgan for season 7 of America’s Got Talent.