- Higher in premarket, Sirius XM (NASDAQ:SIRI) has slipped 3.5% on very heavy volume after an in-line earnings report that also featured the initiation of a dividend and an increased buyback.
- Shares were up as much as 3.3% in premarket trading after the report.
- Net income rose 16%, to $194M, and EBITDA of $492M was up 10% and beat an expected $475.5M.
- It added 345,000 net subscribers to inch closer to 31M total. Self-pay net adds were 385,000, bringing that total base to 25.5M.
- Average revenue per user grew 3% to $13.04; combined with the increase in subs, revenues were up 9.4% overall to a record $1.3B.
- The company launched a quarterly dividend of a penny per share, and increased its buyback authorization by $2B. That brings total authorization to $10B, of which Sirius XM has repurchased $7.6B worth.
- And it boosted revenue guidance for 2016 to about $5B and forecast full-year EBITDA of $1.85B (both in line with expectations). It sees full year net adds of about 1.7M subscribers, about 1.6M self-pay subscribers, and free cash flow approaching $1.5B.
- Press Release