New York – SiriusXM posted a 12.2 percent revenue gain in its second quarter to $940.1 million and net income of $125.5 million on the highest quarterly gain in net new subscribers since the fourth quarter of 2007.
Revenue gains marked the sixth consecutive quarter of double-digit revenue growth.
The company’s subscriber base hit almost 25.1 million for a record high, thanks to strong new car sales, the company’s used car initiatives, and a more than 69 percent penetration rate into new vehicles at the end of the quarter for a record high, said CEO Jim Meyer.
Average revenue per user rose 2.6 percent to $12.28, and the number of self-pay subscribers was 20.3 million at the end of the quarter.
Second-quarter net income was down from the year-ago $3.13 billion, which was attributable almost solely to a year-ago one-time $3 billion income-tax benefit that resulted from previous years of net operating losses (NOLs). Without last year’s NOLs, second-quarter net income would have fallen slightly.
For the half, revenues rose 10.6 percent to $1.84 billion, and net income fell to $249 million from a year-ago $3.24 billion. First-half net income fell to $249.1 million from a year-ago $3.242 billion
For the quarter, the number of net new subscribers hit 715,762, up 15.1 percent compared with the year-ago quarter’s 622,042.
Separately, Meyer said “multiple OEMs” will join Chrysler in the fall in offering Satellite Radio 2.0, which delivers extra channels and features, for model-year 2014 vehicles.
He also said SiriusXM is in discussions with all major automakers to bring in-car IP streaming of on-demand music and the personalized MySXM music service via the company’s smartphone app. Ford launched the services earlier this year.
In other comments, the company reiterated full-year guidance of net subscriber additions of around 1.5 million and revenue of more than $3.7 billion, up 8.8 percent from 2012’s $3.4 billion. .
The forecast of 1.5 million net subs, however, would fall short of the company’s 2012 gain of 2 million net new subscribers and 2011’s gain of 1.7 million. The 2012 gain was the company’s best annual gain since 2007.
The company also reiterated its existing 2013 forecast of 1.6 million self-pay net subscriber additions, which would be slightly down from 2012, when the company posted a 1.7 million gain.