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Sirius XM turns 3.5% lower after in-line earnings, new dividend

Published 10/27/2016, 12:58 PM
Sirius XM turns 3.5% lower after in-line earnings, new dividend
  • Higher in premarket, Sirius XM 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

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