by Demian Russian
In a press release this morning, Sirius XM Radio (NASDAQ: SIRI) announced that they will be releasing financial and operating results for the second quarter of 2010 on Wednesday, August 4th, 2010. Sirius XM will be holding a conference call on August 4th at 8:00AM Eastern to discuss the results and field analyst’s questions. The conference call will be streamed live and also available for replay at www.sirius.com. The conference call will also be broadcasted live on Sirius channel 126 and XM channel 90.
Following Sirius XM’s Q1 results on May 17th, the company raised guidance for full-year 2010. The company was now forecasting for FCF (Free Cash Flow) for full-year 2010 to be over $100 million, full-year 2010 pro forma revenue of $2.75M, and full-year pro forma adjusted income from operations to be approximately $575 million. The company was now looking for net subscriber additions for full-year 2010 to be over 750,000, up from their previous guidance for over 500,000.
On July 7th, Sirius XM pre-announced Q2 subscriber metrics and announced that they had added 583,000 subscribers in the second quarter. This brought net subscriber additions for the first half of 2010 to 754,000, compared to a loss of (590K) subscribers in the first half of 2009. It was announced that gross additions increased by 46% and deactivations decreased by 8%, compared to the second quarter of 2009. The company also announced that self-pay churn improved to 1.8% in the second quarter of 2010, down from 2.0% in the second quarter of 2009, and that the conversion rate from a trial subscription improved in the second quarter to 46.7%, up from 44.3% in the second quarter of 2009.
Where did all of these subscribers come from and what are the financial metrics behind them? How much will SAC (Subscriber Acquisition Costs) increase due to these subscribers? How much did the company spend in subscriber retention efforts? Will there be an increase in the number of subscribers paying the U.S music royalty fee. How will ARPU (Average Revenue Per User) be affected? Investors and analysts will be looking for the answers to these questions and many more.
Satellite Radio Playground and SiriusBuzz will be joining forces again to provide live coverage of Sirius XM’s second quarter earnings results release and conference call. Stay tuned for details.
Position: Long SIRI
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