Satellite Technology Feature Article
Sirius XM Releases Average Earning Report
By Oliver VanDervoort, Contributing Writer
Satellite radio company Sirius XM just released its third quarter financial numbers and most industry analysts say that the results show a bit of a mixed bag. The company has seen some real growth after it merged with a competitor. The company has also struck a couple of deals with business partners that seem to indicate a healthy amount of growth over the next few years.
Among the data that the company released was a rise in revenue of 14 percent from 2011. One year ago, Sirius XM saw revenue of $762.6 million compared to the $867.4 million they raked in over the third quarter of 2012. The negative aspects of the report showed that the company had to shoot its finances in the foot by retiring quite a bit of debt. The net earnings for the company hit just $74.5 million for the three month period that ended on September 30. That number was a steep 28 percent drop from a year ago when they earned $104.2 million.
How did the company rake in more revenue but had less total earnings? The company retired more than $107 million in debt which could mean healthier bottom lines in the near future and especially when it comes to the fourth quarter of 2012. Despite what could be sunny forecasts for the future, analysts were still less than impressed by the report since most had expected them to post earnings that would allow them to show about two cents per share. Their earnings ended up paying out about one cent per share when the smoke cleared.
The company says that they had a net gain of 446,000 and expects to have a net gain over the year of about 1.8 million subscribers. They are currently sitting at just over 23.4 million current subscribers. The company owes quite a bit of success to in car radios that come complete with free trials of their satellite service. The company is looking to build on that with moves like the new deal they just signed with Nissan to get more telematics into their vehicles.
Edited by Brooke Neuman