By Demian Russian
Sirius XM Radio (NASDAQ:SIRI) CEO Mel Karmazin, at the Liberty Media 2012 Investor Meeting in New York City, pre-announced that Sirius XM had added 445,921 net new subscribers during its third quarter, ending September 30th, 2012. Sirius XM ended the third quarter with a record 23,365,383 subscribers. In addition, Mel Karmazin announced that the company was raising its full-year 2012 net new subscriber addition guidance from a previous guidance of 1.6 million to 1.8 million.
“These strong net additions produced our best third quarter since the merger and exceeded third quarter 2011 subscriber growth by 34%. With almost 1.5 million net subscribers already added in 2012 and continuing growth in auto sales, we will significantly exceed our previous guidance of 1.6 million, marking our third increase in subscriber guidance this year and putting us on track for record post-merger net additions.”
– Mel Karmazin, SiriusXM Radio’s Chief Executive Officer
Sirius XM Radio is scheduled to report its third quarter 2012 earnings results on Tuesday, October 30th, 2012. Sirius XM has scheduled a conference call to discuss these Q3 results for Tuesday, October 30th at 8:00 am ET. Read More
By Demian Russian
When Sirius XM Radio (NASDAQ:SIRI) released its first quarter earnings results on May 1st, Sirius XM management raised the company’s full-year net new subscriber guidance by 200,000, from 1.3 million to 1.5 million. Sirius XM CEO Mel Karmazin stated, ”With auto sales in the first quarter exceeding expectations and better than expected churn, we now expect to grow our net new subscribers by 1.5 million in 2012.”
With continuing positive momentum in U.S. auto sales, we may see another subscriber guidance upgrade from Sirius XM management on the way. TrueCar, an authority on new car pricing, trends and forecasting, released its official May 2012 sales and incentives forecast today. TrueCar is expecting May 2012 U.S. new vehicle sales to be highest in five years, since May of 2007. Read More
By Demian Russian
Sirius XM Radio (NASDAQ:SIRI) CEO Mel Karmazin stated during the company’s last quarterly conference call that the consensus for 2012 total U.S light vehicle sales was $13.7 million and that the expected year-over-year growth of 8% provided a “solid foundation for subscriber growth this year.” While offering up full-year 2012 net new subscriber guidance of only 1.3 million, which comes in below the 1.7 million net new subscribers the company was able to generate last year and even below the 1.4 million the company was able to garner in 2010, Karmazin even added that he was “very optimistic about our ability to grow subscribers” and that he expected a “bigger contribution from the reactivation of radios in used cars” this year. With so much optimism, why guide for only 1.3 million net subscriber adds? Karmazin explained that management’s 2012 full-year subscriber guidance was “tempered by our sense of conservatism around the price increase we implemented January 1st, 2012.” That being said, Karmazin did add, “We will update our guidance, if appropriate, as the year progresses.”
In light of a strengthening auto sales channel, it may become more “appropriate” to raise subscriber guidance. Read More
By Brian Newman Rayl
Sirius XM Radio (NASDAQ:SIRI) will be holding their fourth quarter and full year 2010 conference call on Tuesday, February 15th, 2011.
Over the previous four quarters, Sirius XM has pre-announced several metrics prior to announcing the conference call date. Several people have voiced concern that Sirius XM has not released anything so far this quarter. Rumors have been thrown out that perhaps the company missed their subscriber guidance for the year, that churn skyrocketed because of the loss of Bubba The Love Sponge, or that debt is finally crushing the company after the re-signing of Howard Stern, all of which are preposterous.
Prior to 2010, Sirius XM (or the individual companies prior to the merger) rarely released any financial metrics or subscriber numbers prior to the conference calls unless they hit a milestone such as surpassing the next million subscriber level.
Auto sales were robust for the fourth quarter of 2010. To put this in perspective, in the fourth quarter of 2009 auto makers sold 2,619,518 vehicles. With this number of vehicles sold, Sirius XM was able to add 257,028 subscribers. Keep in mind that this was during a very tough economic time, and many of the vehicles that were being sold during that time period were economy-style vehicles, which historically do not have a good conversion rate for Sirius XM. Read More