SiriusXM Reports Swing To Q4 Loss

• Self-Pay Net Subscriber Additions of 1.56 Million in 2017
• 2017 Net Income Totals $648 Million After $185 Million Charge Related to the Tax Cuts and Jobs Act
• Adjusted EBITDA Grows 13% to a Record $2.12 Billion in 2017
• Company Beats 2017 Financial and Subscriber Guidance

SiriusXM today announced fourth quarter and full-year 2017 operating and financial results, including record revenue of $1.4 billion and $5.4 billion, respectively, each increasing 8% versus the prior year periods.

SiriusXM reported a swing to a fourth-quarter loss on special charges as it continued to add subscribers.

It also reported a fourth-quarter loss of $37 million, compared with earnings of $205 million in the year-ago period. The latest quarter included a $185 million charge "associated with the revaluation of the company's deferred tax assets as a result of the Tax Cuts and Jobs Act." The company also recorded a decrease of approximately $72 million in the fair value of its investment in Pandora.

"The fourth quarter capped a strong year for SiriusXM and was our best quarter for self-pay subscriber growth in five years. We exceeded all of our 2017 subscriber and financial guidance, even after increasing these targets during the year. I am particularly pleased that we achieved this growth in an environment of slowing auto sales. Earlier this month, we outlined our goals to grow subscribers, revenue and adjusted EBITDA in 2018, and at the Detroit Auto Show, we unveiled with Fiat Chrysler (FCAU) the new Ram 1500, which will soon be available to consumers with our new 360L interface," commented Jim Meyer, Chief Executive Officer, SiriusXM.

"SiriusXM didn't let up in the fourth quarter in finding and delivering outstanding new programming for our national audience. We see this as a true competitive advantage and simply part of our DNA. From the launch of new college sports channels from major conferences, to a new comedy channel with Kevin Hart and a new show with Ricky Gervais, to our newly launched 24/7 channel with Barstool Sports, to breaking new artists across multiple genres, and to exclusive concerts with icons such as the Eagles and Duran Duran in special venues, we never stop delivering the best radio for our subscribers," added Meyer.