By Roger Choudhury
Sirius XM Radio (SIRI) made $2.8 billion in revenues in 2010, which was growth of 13.93%, after jumping 48.6% in 2009. The company turned its first profit in 2010 by bringing in $43 million. In 2009, the company lost $343 million, and in 2008, the company lost $5.3 billion. The EBT margin was razor thin at 1.69%. The same figure in 2009 was -13.62%, but it was -319.68% in 2008. The return on invested capital was 1.32%, after posting -16.6% in 2008. The current ratio is an unhealthy 0.42, with a debt to equity ratio of 14.55. EPS was $0.01. In 2011, Sirius XM Radio expects revenue of ~$3 billion. This implies revenue growth of ~6%.
CEO Mel Karmazin said:
With continuing improvements in auto sales, and self-pay churn and conversion rates for 2011 similar to our strong performance in 2010, we expect to grow our net new subscribers by another 1.4 million in 2011, continuing our track record of solid subscriber growth. We also expect this year's free cash flow to approach $300 million.
During 2010, the company added 1,418,206 net subscribers to its satellite radio service. Sirius also competes with traditional AM/FM radio, HD radio, internet radio and internet-enabled smartphones, advanced in-dash infotainment systems, direct broadband satellite and cable audio, and traffic news services.
The 30-day put/call ratio is 0.1. Since the earnings release on February 15, SIRI is down by 1.1%.
Corus Entertainment (CJREF.PK) is a Canada-based media and entertainment company with interests in radio broadcasting, television broadcasting, and the production and distribution of children’s media content. Corus’ principal assets consist of 49 radio stations primarily in urban centers in Canada; a variety of specialty television networks focused on children and adult genres, and western Canada’s premium television services.
The company made 836 million CAD ($860 million) in FY 2010 ending in August, which was an increase of 6.02%, after inching up only 0.2% in FY 2009. Ending in November 2010, Q1 2011 brought in 241 million CAD ($248 million), which is an increase of 8.5% from Q1 2010 and a rise of 18.7% from Q4 2010. The EBIT margins in FY 2010 and 2009 were 20.06% and 0.55%. The respective returns on invested capital were 8.04% and -3.57%. For the trailing 12 months, the EBT margin and ROIC were 17.3% and 5.96%, respectively. EPS is 1.22 CAD ($1.254), implying a P/E of 17.7. In FY 2011, the company expects consolidated EBITDA of $285 to $295 million.
Since October 11, 2010, Corus shares are up 3.48%. The 30-day put/call ratio is 0.3. The company also trades on the Toronto Stock Exchange (CJR-B.TO).
Citadel Broadcasting (CDELB.PK) is the third largest radio broadcast operator in the U.S., based on revenue. The company also acquired ABC Radio. It made $721 million in revenues in 2009, which was a decrease of 16.16%. However, the company suffered a loss of $783 million. Through the first nine months of 2010, the company made revenues of $464 million, which was an increase of 4.8% from the same period in 2009. Profits also rose to $1.07 billion. The company posted its last full-year profit in 2005. For the trailing 12 months, EPS was $5.58, so Citadel trades at a P/E of 6.1. Its market cap is right under $600 million. YTD, the company's share price is up 14.5%.
Clear Channel (CCO) is a diversified media company that operates in three segments: Radio broadcasting, Americas outdoor advertising, and international outdoor advertising. For 2010, the Company's revenues grew 6% to $5.87 billion, which was an increase of 5.7%. However, there was a net loss of $462.8 million in 2010. But in 2009, there was an even bigger loss of $4.04 billion. CCMO has traded between $3.20 and $16.00 within the past 52 weeks. Its market cap is $640 million.
Radio broadcasting revenue increased $162 million, or 6%, during 2010 compared to 2009, driven primarily by an $80 million increase in national advertising and a $51 million increase in local advertising.
Americas’ outdoor revenue increased $52 million, or 4%, during 2010 compared to 2009, as a result of revenue growth across most of the Company’s advertising inventory, particularly digital. International outdoor revenue increased $48 million, or 3%, during 2010 compared to 2009, primarily as a result of revenue growth from street furniture across most countries. This was partially offset by the exit from businesses in Greece and India.
Since its earnings release on February 7, Clear Channel's share price is down 8.2%.
Cumulus Media (CMLS) is the second largest radio broadcast company in the United States, based on station count. The company made $193.5 million in the first nine months of 2010, which was an increase of 3.8% from the same period in 2009. Also, profits came in at $21.89 million in 9M10, after turning in a loss of $133.2 million in the first nine months of 2009. The EBT margin in the first nine months of 2010 was 12.9%. The company has a stockholder’s deficit of $349 million, but the current ratio is 0.96. EPS for the trailing 12 months was $0.69, implying a P/E of 7.2. Full-year 2010 earnings results are released on March 14.
Over the last 5 days, CMLS is up 1.4%. Its market cap is $177 million.
CBS (CBS) made $14.06 billion in revenues in 2010, which was an increase of 8%, after falling 6.71% in 2009. Profits grew by 219.74% to $724 million. The EBT margins in 2010 and 2009 were 8.69% and 3.4%, respectively. The respective returns on invested capital are 4.55% and 1.4%. EPS was $1.04, and so P/E is 23.
Entertainment revenues of $7.39 billion for 2010 increased 6% from $6.98 billion for 2009, primarily due to higher Network advertising sales. Growth came from Primetime and Sports, including the telecast of Super Bowl XLIV and the 2010 NCAA Division I Men’s Basketball Championship on the CBS Television Network. Since the earnings release on February 16, CBS shares are up 10.6%. The 30-day put/call ratio is 0.5.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.