SiriusXM Q3 Revs Down 4% to $2.17B, Significant Net Loss

RADIO ONLINE | Friday, November 1, 2024

SiriusXM

SiriusXM reported third quarter of 2024 financial results on Friday revealing a challenging period marked by a significant net loss of $2.96 billion. This loss was largely due to a non-cash impairment charge of approximately $3.36 billion associated with the Liberty Media transaction, which evaluated the company's goodwill in light of a sustained lower share price.

Despite this, the company posted total revenue of $2.17 billion, a 4% decrease from the same period in 2023. The drop in revenue reflects a decline in subscriber numbers and lower advertising sales, particularly in the second half of the year.

SiriusXM posted a net loss of $2.96 billion, while total revenue decreased by 4% to $2.17 billion. Adjusted EBITDA fell by 7% to $693 million, with a margin of 32%. Free cash flow was reduced to $93 million, impacted by transaction-related expenses.

SiriusXM's subscriber base showed minimal growth with 14,000 net self-pay subscriber additions in Q3. However, the company experienced a reduction in paid promotional subscribers by 114,000 due to shifts in automaker promotions. The total subscriber count at the end of the quarter stood at 33 million.

The revenue for the SiriusXM segment was $1.6 billion, marking a 5% decrease year-over-year, primarily driven by a drop in average revenue per user (ARPU) and a shrinking base of self-pay subscribers. Meanwhile, Pandora and Off-Platform segments slightly decreased in revenue by 1% to $544 million, with a modest decline in advertising revenue but a slight increase in subscriber revenue.

Amidst the financial strain, SiriusXM has adjusted its full-year 2024 revenue projections downwards to approximately $8.675 billion. However, it maintains its forecast for adjusted EBITDA at about $2.7 billion and anticipates generating around $1 billion in free cash flow.

SiriusXM CEO Jennifer Witz emphasized the transformative phase for the company, highlighted by the Liberty Media transaction. "This quarter marked a significant milestone as we completed our transition to an independent company," said Witz. "We're focused on long-term growth by leveraging our subscription and advertising expertise."