Summary
Q3 revenues topped $1.5 billion.
Company reported profit of $0.07 per share.
Adjusted EBITDA approaches $600 million.
Sirius XM (SIRI) reported its Q3 earnings on October 25th, and on top of a profit of $0.07 per share, the company had several records within the quarter. The satellite radio provider appears to be marching along and increasing its pace. Among the positive items of the quarter were:
- 298,000 net new self-pay subscribers in the quarter.
- Third-quarter revenue of $1.5 billion, a new quarterly record.
- Net income grows 24% to $343 million in the quarter; diluted EPS climbs to $0.07.
- Record adjusted EBITDA of $589 million drives adjusted EBITDA margin over 40% for first time.
- Company increases 2018 guidance for self-pay subscribers, revenue and adjusted EBITDA.
The revenue of $1.5 billion represented an increase of 6% versus the prior-year period, while the net income of $343 million represents 24% growth over $276 million in the prior-year period. Adjusted EBITDA grew 7% in the third quarter of 2018 to a quarterly record of $589 million, while operating cash flow and free cash flow in the third quarter of 2018 decreased (32)% and (34)%, respectively, to $352 million and $288 million, due to the previously announced one-time lump sum payment of $150 million to resolve all outstanding statutory license claims for sound recordings.
Sirius XM added 298,000 net new self-pay subscribers in Q3 to end the period with approximately 28.5 million self-pay subscribers. Self pay monthly churn was stable at 1.8%. Total net additions in the third quarter were 198,000, resulting in approximately 33.7 million Sirius XM subscribers at quarter-end. Average revenue per subscriber finished the quarter at $13.48.
