SiriusXM’s Second-Quarter Subscription Loss Narrows Due to Strong Content Demand – Reuters

SiriusXM reported a smaller-than-expected decline in its satellite radio service subscribers, buoyed by consistent demand for its content, including popular programs like the Howard Stern show.

The decrease in the crucial subscription segment narrowed both sequentially and year-over-year, attributed mainly to strong customer retention, according to the company’s statement.

“We still expect to see slightly better self-pay net additions this year compared to last,” stated CEO Jennifer Witz.

For the quarter ending June 30, the number of self-pay subscribers dropped by 100,000, a reduction that is lower than the 132,000 loss reported a year earlier. Analysts had projected a loss of 153,140 subscribers.

The company’s churn rate for the second quarter, which reflects the percentage of customers who stopped using the service, remained at 1.5% for self-pay users, consistent with the previous year. Additionally, paid promotional subscribers fell by approximately 73,000, primarily due to a trend toward unpaid trial subscriptions offered by specific automakers.

SiriusXM’s quarterly revenue reached $2.18 billion, falling short of estimates of $2.20 billion. However, advertising revenue was a bright spot, totaling $443 million and surpassing the average analyst expectation of $331.2 million.

Net income for the quarter was reported at $316 million, slightly up from $310 million a year ago, with free cash flow increasing to $343 million, compared to $323 million in the prior year.

The company anticipates finalizing its announced transaction with Liberty Media after the market closes on September 9, as mentioned by finance chief Tom Barry.