SiriusXM Q3 Total Revs Up 37% to $2 Billion, Earnings Down

RADIO ONLINE | Thursday, October 31, 2019 | 5:28pm CT

SiriusXM

SiriusXM reported third quarter 2019 total revenue increased 37% to $2 billion compared $1.46 billion in 2018, boosted by the acquisition of Pandora Media on February 1. On a pro forma basis, revenue climbed 7% from $1.9 billion, while adjusted EBITDA grew 12% to $657 million. The company posted a net income of $246 million (5 cents per diluted share) as compared to earnings of $343 million (7 cents) in the year-ago period.

The decline in net income was primarily driven by refinancing expenses associated with SiriusXM's July redemption of its 6% senior notes due 2024, in addition to non-recurring tax benefits in the prior year period. The company's effective tax rate for the third quarter 2019 was 22.2%, compared to 3.3% in the prior year period.

"SiriusXM's robust third quarter saw strong results across the board. Total net additions benefited from continuing strength in the auto sector, and our adjusted EBITDA hit an all-time quarterly record of $657 million. Things have never been more exciting at the company as we continue to invest in our brands, content, products and expanded OEM distribution. With two months left in the year, we are raising 2019 guidance for revenue, adjusted EBITDA and free cash flow and we are confident in our expectations for self-pay subscriber growth," said SiriusXM CEO Jim Meyer.

SiriusXM self-pay subscribers topped 29.6 million adding 302,000 net new self-pay subscribers in the third quarter. Total net subscriber additions in Q3 were 210,000, resulting in more than 34.6 million total SiriusXM subscribers at the end of the period. Self-pay monthly churn for the quarter was 1.7%, compared to 1.8% in Q3 2018.

Pandora ad revenue reached a record $315 million, growing 8% over the third quarter of 2018. Ad revenue was driven by strong third quarter monetization of $85 per thousand hours, growing 10% over 2018. Total revenue for Pandora grew 7% to $447 million in the quarter, aided in part by a 5% increase in subscriber revenue to $132 million.