SiriusXM Reports Record Quarterly Revenue

SiriusXM today announced third quarter 2016 operating and financial results, including record quarterly revenue of $1.3 billion, up 9% from the third quarter of 2015.

Net income totaled $194 million in the third quarter of 2016, up 16% from $167 million in the third quarter of 2015. Net income per diluted common share was $0.04 in the third quarter of 2016 compared to $0.03 in the third quarter of 2015. Adjusted EBITDA grew 10% in the third quarter of 2016 to $492 million, while operating cash flow and free cash flow totaled $422 million and $357 million, respectively.

SiriusXM also announced today that its Board of Directors declared its first quarterly dividend in the amount of $0.01 per share of common stock payable on November 30, 2016 to stockholders of record as of the close of business on November 9, 2016. The company also announced that the Board of Directors intends to institute a quarterly dividend on its common stock in an aggregate annual amount of $0.04 per share.

Jim Myer

The Board also approved an additional $2 billion of share repurchases, bringing SiriusXM's total repurchase authorization to $10 billion. SiriusXM has already repurchased an aggregate of $7.6 billion of common stock under its stock repurchase program.

"SiriusXM's performance in the third quarter was exemplary. We grew self-pay subscribers by 385,000 and turned in record quarterly high levels of revenue and adjusted EBITDA. Additionally, we attained our highest-ever ARPU and adjusted EBITDA margin and lowest-ever SAC per installation and customer service cost per subscriber. In short, our business is operating more efficiently than ever before, and we are pleased to increase our revenue and adjusted EBITDA guidance for the second time this year," said Jim Meyer, Chief Executive Officer, SiriusXM.

"We remain dedicated to bringing the best audio entertainment in an easy to use bundle of programming to a nation of listeners. In recent months, we've strengthened areas where we are leaders, such as country music, added new talent in talk programming, and held special, one-of-a kind live music events for subscribers and listeners nationwide, all content you can only find at SiriusXM," added Meyer.

THIRD QUARTER 2016 HIGHLIGHTS

• SiriusXM Subscribers Approach 31 Million. The company added 345,000 net new subscribers during the most recent three month period to end the third quarter of 2016 with approximately 31 million subscribers. Self-pay net additions were 385,000 during the third quarter, resulting in self-pay subscribers of 25.5 million at September 30, 2016.
• Strong Revenue Growth and Record ARPU. Revenue climbed 9% to a quarterly record of $1.3 billion. The growth was driven by a 7% increase in subscribers and a 3% increase in average revenue per user (ARPU) to $13.04.
• Record Adjusted EBITDA. Adjusted EBITDA in the third quarter of 2016 was $492 million, a record quarterly high, and up 10% from $447 million in the third quarter of 2015. Adjusted EBITDA margin was a record high 38.4% in the third quarter of 2016, up from 38.2% in the third quarter of 2015.

"Since the start of the third quarter, we spent roughly $300 million to repurchase 72 million shares of our common stock. SiriusXM's average share count declined by 8% in the third quarter 2016 from a year earlier as a result of our share repurchases. We are also pleased to announce a regular dividend as an element of our capital return program, beginning at $0.01 per share per quarter. Our debt to adjusted EBITDA remained just 3.4 times, and we ended the third quarter 2016 with a cash balance of $572 million in anticipation of the October 1 redemption of our 5.875% Senior Notes due 2020. We expect to continue strong capital returns to stockholders while making strategic investments in technology, content, and new satellite infrastructure," noted David Frear, Chief Financial Officer, SiriusXM.