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SiriusXM Reports Third Quarter 2017 Results

- Third Quarter Revenue Climbs 8% to $1.4 Billion

- Adjusted EBITDA Grows 12% to a Quarterly Record of $551 Million and Margin of 39.9%

- Quarterly Operating Cash Flow Rises 24% to $521 Million

- Free Cash Flow Grows 22% to a Quarterly Record $434 Million

- Self-Pay Net Subscribers Increase 311,000 to Reach Approximately 27 Million

- Company Increases 2017 Guidance for Revenue, Adjusted EBITDA and Free Cash Flow

NEW YORK, Oct. 25, 2017 /PRNewswire/ -- SiriusXM today announced third quarter 2017 operating and financial results, including record revenue of $1.4 billion, up 8% versus the prior year period.

Net income totaled $276 million in the third quarter 2017, up 42% from $194 million in the third quarter 2016. Net income per diluted common share grew 49% to $0.06 in the third quarter 2017, compared to $0.04 in the third quarter 2016. Adjusted EBITDA grew 12% in the third quarter 2017 to a record $551 million, compared to $492 million in the third quarter of 2016. Operating cash flow in the third quarter 2017 increased 24% to $521 million, compared to $422 million in the third quarter 2016. Free cash flow in the third quarter 2017 grew 22% to $434 million, compared to $357 million in the third quarter 2016.

"SiriusXM delivered a very strong third quarter despite headwinds from slowing auto sales and the impact of severe weather in many parts of the United States. We recorded our best-ever quarter for adjusted EBITDA and its corresponding margin — which reached 39.9%. SiriusXM is pleased to once again raise our full-year guidance for revenue, adjusted EBITDA and free cash flow. In September, we also completed our $480 million strategic investment in Pandora and recently announced a 10% hike in our quarterly dividend," said Jim Meyer, Chief Executive Officer, SiriusXM.

"We continue to create and broadcast the best audio entertainment available today, whether it's in music, comedy, talk or sports. We love to take care of our subscribers and will do it again this weekend in Nashville with a special and exclusive event with the Eagles at The Grand Ole Opry House, where the group has never played before," said Jim Meyer. "It follows a great summer and fall of live concerts with a series of established and emerging stars, such as Chicago, Lorde, Dwight Yoakam, and The Killers, to name a few. And we continue to add new music channels and draw world class talent to our comedy, sports and talk programming," added Meyer.

THIRD QUARTER 2017 HIGHLIGHTS

  • Self-Pay Subscribers Reach Approximately 27 Million. The company added 311,000 net new self-pay subscribers in the third quarter 2017 to end the period with approximately 27 million self-pay subscribers. Total net additions in the quarter were 119,000, after giving effect to the decline of approximately 191,000 paid promotional subscribers. The decline in paid promotional net additions was due to paid promotional subscription ends out-pacing paid promotional subscription starts as a result of lower shipments from automakers offering paid promotional subscriptions. The company ended the quarter with approximately 32.2 million total subscribers and a total funnel of trial subscribers of approximately 8.9 million.
  • Strong Quarterly Revenue and ARPU. Third quarter revenue climbed 8% compared to the year ago period to a record $1.4 billion. The growth was driven by a 4% increase in subscribers and a 3% increase in average revenue per user (ARPU) to $13.41, a record high.
  • Record Adjusted EBITDA and Margin. Adjusted EBITDA in the third quarter of 2017 reached a record $551 million, up 12% from $492 million in the third quarter of 2016. Adjusted EBITDA margin was an all-time high of 39.9% in the third quarter of 2017, a 150 basis point increase from 38.4% in the third quarter 2016.
  • Free Cash Flow Reaches Record $434 Million. Free cash flow for the third quarter 2017 totaled $434 million, up 22% from $357 million in the third quarter 2016. Operating cash flow for the third quarter 2017 totaled $521 million, up 24% from the third quarter 2016.

"So far this year, we have deployed approximately $2 billion to return capital to our stockholders and to make strategic investments. In the third quarter, we spent $211 million to repurchase nearly 39 million shares of our common stock. We also returned $46 million in cash to our stockholders in the form of dividends in the quarter, bringing total capital returned to stockholders to $257 million in the third quarter. During the third quarter, we spent approximately $308 million to complete our investment in Pandora, and our Board of Directors approved a 10% increase in our quarterly dividend. At the end of the quarter, our debt to adjusted EBITDA was just 3.3 times, and we had cash on hand of approximately $74 million and undrawn revolver capacity of nearly $1.5 billion," noted David Frear, Chief Financial Officer, SiriusXM.


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