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Home >> SiriusXM's Net Subs, Revenue, Net Income All Rose Last Year
NEW YORK – SiriusXM’s reported revenues, net income, and number of net new subscribers gained in 2012 because of rising new-car sales, more activations of satellite radios in used cars, and lower churn.
Revenues and net income were also up in the fourth quarter, but the number of net new subscribers slipped slightly.
In 2012, the satellite-radio broadcaster gained 2 million net new subscribers in 2012, up from 2011’s 1.7 million to mark the best annual gain since 2007. The gains expanded the company’s subscriber base to a record 23.9 million at the end of the year.
The company, however, forecast a 2013 new subscriber gain of only 1.4 million, in part because of expected slower growth in new-car sales.
Self-pay net subscriber adds hit almost 1.7million for the year, yielding an all-time high in the self-pay subscriber base of almost 19.6 million.
Self-pay monthly churn in 2012 remained unchanged at 1.9 percent, as did the 45 percent.
The number of net new subscribers for the quarter slipped slightly to 534,953 from the year-ago 542,966. Self-pay monthly churn for the quarter fell to 1.8 percent from the year-ago 1.9 percent. The rate at which owners of new cars converted to a paid subscription from a trial subscription in the quarter was steady at 44 percent.
For the full year, revenues were up 12.7 percent to $3.4 billion, and for the quarter, revenues rose 13.9 percent to $892.4 million.
Net income rose to $3.47 billion for the year compared to 2011’s $427 million, but $3 billion of the net income resulted from a one-time second-quarter income-tax benefit exercised to take advantage of previous years of net operating losses (NOLs). Without the one-time gain, full-year net income would have been up 10 percent to $470 million.
For the quarter, net income rose 119 percent to $156.2 million.
Because of NOLs that the company hasn’t yet exercised, the company said it expects to pay “no significant cash taxes for several years,” said CEO Jim Meyer. The company has about $7 billion in NOLs to use to shield itself from taxes, said executive VP/ chief financial officer David Frear.
Despite expected slower growth in new-car sales in 2013, the company plans to gain from Toyota’s January announcement that it will include satellite radio with all vehicles equipped with its Entune infotainment system.
In other comments, Meyer said the company’s IPbased Internet-streaming offerings will make their way into car OEM systems, but he didn’t specify a time period.
For more on SiriusXM, visit TWICE.com.
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