SiriusXM earnings report shows gain of 187,000 self-paid subscribers
The radio giant is the home of shock-jock radio personality Howard Stern
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SiriusXM released its third-quarter earnings for 2022 on Tuesday, which showed the audio entertainment giant gained 187,000 but lost approximately 49,000 paid promotional subscribers.
The company reported 32.2 million self-pay subscribers at the end of the third quarter and a total subscriber count of 34.2 million that was last updated at the end of September. As paid promotional subscribers decreased, the SiriusXM trial funnel was about 7 million, a decline from the prior quarter of 7.3 million.
Pandora, the streaming service for SiriusXM, lost 52,000 net self-pay subscribers, ending the quarter with 6.29 million total self-pay customers. Gross profits for Pandora also decreased by 12% to $173 million compared to the prior quarter last year of $197 million.
"We are pleased to report third quarter results that reflect strong execution during the period while leaning into investments designed to ensure SiriusXM will thrive long-term," said Jennifer Witz, chief executive officer at SiriusXM.
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SiriusXM is the home of longtime radio personality Howard Stern. (Getty Images / Getty Images)
"This quarter we focused on enhancing the listener experience and expanding our unparalleled stable of programming and talent to continue providing our subscribers with the best in audio, both in-car and in the SXM App," Witz added.
Moreover, subscriber acquisition costs increased from $71 million in the prior year period to $86 million, reportedly due to higher costs for equipment installations by automakers.
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SiriusXM increased its revenue for the quarter to $2.28 billion, which totals an increase of 4% over the year. Quarterly dividends also rose by 10%, and year-to-date capital returns totaled $1.8 billion for stockholders.
"SiriusXM delivered solid subscriber and revenue growth during the third quarter, and while we continue to closely monitor downward trends in the advertising market that add risk to our 2022 expectations, we are pleased to reiterate our full-year subscriber and financial guidance," said Sean Sullivan, the company's chief financial officer.