Sirius - how much are you paying?

[PaulGo]

SIRIUS XM Radio Reports Second Quarter 2010 Results

- Strong Double-Digit Revenue Growth Year Over Year - Adjusted EBITDA of $154 million, Up 17% Year Over Year - Company Raises Financial Guidance

 

NEW YORK, Aug 04, 2010 /PRNewswire via COMTEX News Network/ -- SIRIUS XM Radio (Nasdaq: SIRI) today announced second quarter 2010 financial and operating results, including:

 

* $705.6 million of adjusted revenue, up 16% over second quarter 2009 adjusted revenue of $607.8 million; and

* $154.3 million in second quarter 2010 adjusted EBITDA, an increase of 17% over second quarter 2009 adjusted EBITDA of $132.2 million.

The discussion of adjusted operating results excludes the effects of stock-based compensation and certain purchase price accounting adjustments. Financial measures and metrics previously reported as "pro forma" have been renamed "adjusted."

 

"The sharp subscriber growth and double-digit increase in adjusted revenue and adjusted EBITDA show that we continued to execute on our business plan during the second quarter," said Mel Karmazin, Chief Executive Officer, SIRIUS XM. "Compared to the year ago quarter, gross additions increased by 46%, deactivations declined by 8%, and customers paid us on average 11% more each month - clearly showing just how much subscribers love our service. Free cash flow in the second quarter 2010 was $108.3 million compared to $12.7 million in the second quarter of 2009. Our business has improved substantially in the past year, and we look forward to a strong second half and 2011."

 

SIRIUS XM ended second quarter 2010 with a record-high 19,527,448 subscribers, an increase of more than 1.1 million subscribers compared to the end of second quarter 2009. Net subscriber additions of 583,249 in the second quarter of 2010 improved significantly from a net loss of 185,999 subscribers in the second quarter of 2009. In the second quarter 2010, average revenue per subscriber (ARPU) was $11.81, an increase of 11% from ARPU of $10.66 in the second quarter 2009. The company's self-pay monthly customer churn rate was 1.8% in the second quarter 2010, as compared with self-pay monthly customer churn of 2.0% in the second quarter 2009.

 

In June, the company completed the redemption of all of the $114 million of XM's outstanding 10% Senior PIK Secured Notes due 2011. "We will continue to examine deleveraging opportunities as they arise with the objective of decreasing interest expense and improving free cash flow." said David Frear, SIRIUS XM's Chief Financial Officer. "The combination of increased adjusted EBITDA and lower debt has improved our leverage ratio to approximately 4.6x, a historic low for our company."

 

On a GAAP basis, net income (loss) attributable to common stockholders for the second quarter of 2010 and 2009 was $15.3 million and ($159.6) million, respectively, or $0.00 and ($0.04) per diluted share, on revenue of $699.8 million and $590.8 million, respectively. The company's reported net income (loss) attributable to common stockholders included losses on extinguishment of debt in the second quarter of 2010 and 2009 of $31.9 million and $107.8 million, respectively. For the six months ended June 30, 2010 and 2009, net income (loss) attributable to common stockholders was $56.9 million and ($398.5) million, respectively, or $0.01 and ($0.11) per diluted share, on revenue of $1.36 billion and $1.18 billion, respectively.

 

INCREASED 2010 OUTLOOK

 

The company is increasing guidance for the full year 2010, projecting adjusted revenue will approach $2.8 billion and free cash flow will approach $150 million. SIRIUS XM continues to target approximately $575 million of adjusted EBITDA in 2010.

 

As previously announced, SIRIUS XM increased its guidance for net subscriber additions to approximately 1.1 million for the full year.

 

http://investor.sirius.com/releasedetail.cfm?ReleaseID=496253

[scottjn]

Call them and ask for the retentions department. Tell them you want the 1 year half off special that your friends are getting. I did that and got both my subs for half off. There a long thread on this at fatwallet.com.

[con_fusion]

Call them and ask for the retentions department. Tell them you want the 1 year half off special that your friends are getting. I did that and got both my subs for half off. There a long thread on this at fatwallet.com.

 

I too have read the long fatwallet thread.

 

Well my introductory sub was going to expire today so I called the number on the letter - specific to Ford owners I guess. I had received a letter offering 3 months for $38.95.

 

I called and told them a friend had just renewed his for $77 for the year and I wanted to see if I could get that.

 

The person was very nice (southern accent and spoke English) and offered something else that was like $145 a year paid in 2 installments. I politely said no thank you and I said I would just let my sub expire. She asked me to hold on and when she came back she verified the "flyer" was the $77 a year deal. I said yes and they said they could do that.

 

I guess there are taxes, royalty fees etc. so the total was actually $88 but I think I'm ok with that.

 

I was thinking about the lifetime sub but maybe I can try that next time if there is a good deal.

 

We'll see how this goes

 

Thanks

Edited August 20, 2010 by con_fusion

[jeff_h]

The person was very nice (southern accent and spoke English) and offered something else that was like $145 a year paid in 2 installments. I politely said no thank you and I said I would just let my sub expire. She asked me to hold on and when she came back she verified the "flyer" was the $77 a year deal. I said yes and they said they could do that.

 

I was reading on the Sirius web site that it said that if you already had an existing Sirius radio that you could get a "multiple" discount and it would be $8.95/month for the additional, which I would be OK with. So now I have a second car with Sirius, sent an email to their customer service asking if I could add the second vehicle and get the multiple discount, never heard back from them. Now I have to call on the phone, I hate calling and get the customer service rat-maze runaround, no matter what company, not looking forward to this...

[hondaconvert]

SIRIUS XM Radio Reports Second Quarter 2010 Results

- Strong Double-Digit Revenue Growth Year Over Year - Adjusted EBITDA of $154 million, Up 17% Year Over Year - Company Raises Financial Guidance

 

NEW YORK, Aug 04, 2010 /PRNewswire via COMTEX News Network/ -- SIRIUS XM Radio (Nasdaq: SIRI) today announced second quarter 2010 financial and operating results, including:

 

* $705.6 million of adjusted revenue, up 16% over second quarter 2009 adjusted revenue of $607.8 million; and

* $154.3 million in second quarter 2010 adjusted EBITDA, an increase of 17% over second quarter 2009 adjusted EBITDA of $132.2 million.

The discussion of adjusted operating results excludes the effects of stock-based compensation and certain purchase price accounting adjustments. Financial measures and metrics previously reported as "pro forma" have been renamed "adjusted."

 

"The sharp subscriber growth and double-digit increase in adjusted revenue and adjusted EBITDA show that we continued to execute on our business plan during the second quarter," said Mel Karmazin, Chief Executive Officer, SIRIUS XM. "Compared to the year ago quarter, gross additions increased by 46%, deactivations declined by 8%, and customers paid us on average 11% more each month - clearly showing just how much subscribers love our service. Free cash flow in the second quarter 2010 was $108.3 million compared to $12.7 million in the second quarter of 2009. Our business has improved substantially in the past year, and we look forward to a strong second half and 2011."

 

SIRIUS XM ended second quarter 2010 with a record-high 19,527,448 subscribers, an increase of more than 1.1 million subscribers compared to the end of second quarter 2009. Net subscriber additions of 583,249 in the second quarter of 2010 improved significantly from a net loss of 185,999 subscribers in the second quarter of 2009. In the second quarter 2010, average revenue per subscriber (ARPU) was $11.81, an increase of 11% from ARPU of $10.66 in the second quarter 2009. The company's self-pay monthly customer churn rate was 1.8% in the second quarter 2010, as compared with self-pay monthly customer churn of 2.0% in the second quarter 2009.

 

In June, the company completed the redemption of all of the $114 million of XM's outstanding 10% Senior PIK Secured Notes due 2011. "We will continue to examine deleveraging opportunities as they arise with the objective of decreasing interest expense and improving free cash flow." said David Frear, SIRIUS XM's Chief Financial Officer. "The combination of increased adjusted EBITDA and lower debt has improved our leverage ratio to approximately 4.6x, a historic low for our company."

 

On a GAAP basis, net income (loss) attributable to common stockholders for the second quarter of 2010 and 2009 was $15.3 million and ($159.6) million, respectively, or $0.00 and ($0.04) per diluted share, on revenue of $699.8 million and $590.8 million, respectively. The company's reported net income (loss) attributable to common stockholders included losses on extinguishment of debt in the second quarter of 2010 and 2009 of $31.9 million and $107.8 million, respectively. For the six months ended June 30, 2010 and 2009, net income (loss) attributable to common stockholders was $56.9 million and ($398.5) million, respectively, or $0.01 and ($0.11) per diluted share, on revenue of $1.36 billion and $1.18 billion, respectively.

 

INCREASED 2010 OUTLOOK

 

The company is increasing guidance for the full year 2010, projecting adjusted revenue will approach $2.8 billion and free cash flow will approach $150 million. SIRIUS XM continues to target approximately $575 million of adjusted EBITDA in 2010.

 

As previously announced, SIRIUS XM increased its guidance for net subscriber additions to approximately 1.1 million for the full year.

 

http://investor.siri...eleaseID=496253

 

Yes, in it's quarterly report, every company puts a positive spin on everything it does . Usually, when you do the math, most of the "good" news is just that - spin, juggling the numbers. Blah, blah, blah. You really have to talk to consumers.

[hondaconvert]

I renewed for a year last March for $120 plus fees, which turned into $138. I won't be doing it again. The Sirius stations cycle the music just as FM does; you rarely hear anything new. And if you want talk, listen to AM. Flash drives and cds make much more $en$e.

[lordyourjosh]

I too have read the long fatwallet thread.

 

Well my introductory sub was going to expire today so I called the number on the letter - specific to Ford owners I guess. I had received a letter offering 3 months for $38.95.

 

I called and told them a friend had just renewed his for $77 for the year and I wanted to see if I could get that.

 

The person was very nice (southern accent and spoke English) and offered something else that was like $145 a year paid in 2 installments. I politely said no thank you and I said I would just let my sub expire. She asked me to hold on and when she came back she verified the "flyer" was the $77 a year deal. I said yes and they said they could do that.

 

I guess there are taxes, royalty fees etc. so the total was actually $88 but I think I'm ok with that.

 

I was thinking about the lifetime sub but maybe I can try that next time if there is a good deal.

 

We'll see how this goes

 

Thanks

 

I received the same letter from Sirius - $38.85 for 3 months. It didn't sound like a bad deal until I called and found out that is for the music only and doesn't include the Traffic/travel link things the car currently has (well, had, as Sirius was disabled at 11:45am this morning).

 

Being that the letter said "act quickly to avoid disruption of your SIRIUS service" and mentions continuing the "introductory subscription", I think it's a bit of bait and switch. Adding the traffic/travel link is another $6/month on top of it, so actually it's about $19/month. All of the other deals they tried to offer me on the phone were just longer terms with "free months", but still more money for the other features.

 

It's possible I might just be cheap, but I don't feel it's worth that much to me, especially when taxes and other fees are added in taking it to $20 or more.

 

I would have gone with their "a la carte" plan which gives 50 channels (I only listen to about 12) plus the extra $6 for travel link (back to about $12 or $13/month) but, of course, the radio in the Fusion Hybrid "doesn't support a la carte". Nice.

 

Maybe they will give me a better offer at some point, but I'm not going to hold my breath.

[tmdata]

Sirius was great when I was traveling but now that I'm back in the office full time I can't get a signal in the Bldg. (and Blocked out of the Internet)

 

Whatever you do, don't give/gift additonal receivers on the same account. I did and Sirius AUTOMATICALLY renews them for you and then starts dunning you for payment. Lead me to cancel 2 years ago. Now the SECIAL offers abound!

 

Just got the 2011 Fusion and I try them again for 6 months but I don't expect any better service. See ya in March!

[lordyourjosh]

I just renewed my Sirius subscription. I received a letter in the mail today offering me one year for $77 (auto-renewing at the "current" rate after a year, so I'll be careful with that), but I felt that was a more reasonable price. The TravelLink/weather/traffic stuff was an additional $6/month, but I already expected that. After tax and fees, renewing both comes to $172 for a year, or $14.33/month. I find that to be an acceptable price for the services offered. They waived any re-activation fee.

 

If you went radio only, it would come to just shy of $8/month after taxes and fees.

 

To be honest, I did miss the sat radio a little bit. I listened to a lot of news/talk stations to keep up on current events. Also, after going back to standard radio, while I enjoy the better sound quality over the compressed SIRIUS signal when listening to music, I did miss the lack of commercials.

 

Now I just have to make sure my car is on and the radio is in satellite mode at 12:45 so the re-activation signal kicks in.