SiriusXM Revenue Declines 3%, Aligns with EPS Estimates

SiriusXM Reports Q2 2024 Results

SiriusXM Holdings Inc. reported a 3% decline in revenue, totaling $2.18 billion for the second quarter of 2024. While this figure met analysts’ expectations for earnings per share (EPS), it fell short of the revenue consensus.

The satellite radio company maintained an EPS of $0.08, the same as in the previous year’s second quarter and in line with analyst predictions. Despite the dip in revenue compared to Q2 2023, net income increased slightly to $316 million, up from $310 million in the same period last year. The company’s adjusted EBITDA for the quarter was stable at $702 million, reflecting no change year-over-year but an 8% improvement from the first quarter of 2024. This stability can be attributed to a combination of lower subscriber revenue, increased sales and marketing costs, and reduced service costs and general expenses.

In response to the results, the stock saw a 2% increase. CEO Jennifer Witz expressed pride in the company’s financial performance and emphasized a commitment to innovation and growth, especially as SiriusXM approaches the completion of its transaction with Liberty Media.

CFO Tom Barry highlighted the company’s dedication to operational efficiency and financial execution, supported by strategic investments in technology.

For the full year 2024, SiriusXM projects revenues of $8.75 billion, slightly below the analyst consensus of $8.78 billion. This cautious outlook suggests a more conservative approach as it falls short of market expectations.

During the second quarter, SiriusXM also prioritized returning value to its shareholders, distributing $103 million through dividends and reporting a net debt to adjusted EBITDA ratio of 3.2 times. The company aims to maintain a leverage target of mid-to-low three times adjusted EBITDA.

The transaction with Liberty Media is anticipated to close after market hours on September 9th, with the company continuing to focus on delivering long-term value for its shareholders.