SiriusXM Q2 Revenue Up 15% to $2.16 Billion, EPS $0.10

RADIO ONLINE | Tuesday, July 27, 2021

SiriusXM

SiriusXM reported second quarter revenue rose 15% to $2.16 billion from $1.87 billion in 2020. Adjusted EBITDA was $700 million, up 14% from $615 million. The company posted a net income of $433 million (10 cents per diluted share) as compared to $243 million (5 cents) in the year-ago period. Second quarter net income included $140 million in insurance recoveries related to the company's SXM-7 satellite.

SiriusXM added 355,000 net new self-pay subscribers in Q2, a 34% increase from the 264,000 added in Q2 2020. Paid promotional subscribers decreased by 378,000. Continuing impacts of a new vehicle trial structure with certain automakers, and to a lesser extent, lower vehicle shipments due to silicon supply constraints, contributed to negative paid promotional net additions during the quarter. Total subscribers at the end of the second quarter were 34.5 million, an increase of 1% from the prior year period.

"SiriusXM added an impressive 355,000 net new self-pay subscribers in the quarter, putting us on track to add 1.1 million self-pay subscribers this year - our best since 2018 - and we are increasing all of our financial guidance. The quarter was bolstered by record self-pay churn of just 1.5%, and we achieved strong monetization in our advertising business, with an increase in ad revenue of 82% from the prior year period and 20% from the second quarter of 2019," said SiriusXM CEO Jennifer Witz.

"SiriusXM's second quarter results give us impressive momentum heading into the back half of the year. We were pleased to raise $2 billion of new, senior unsecured notes in June with a coupon of just 4%, and we will use the remaining cash proceeds in August to repay our outstanding 2022 notes. In the first half of 2021 we returned approximately $965 million of capital to stockholders, comprised of approximately $844 million in common stock repurchases and $121 million in dividends. At the end of the quarter, SiriusXM's net debt-to-adjusted EBITDA ratio was 3.2x, and our $1.75 billion revolving credit facility was completely undrawn and fully available," added CFO Sean Sullivan.