Imagine: getting fans to pay a modest amount every month, in exchange for an incredibly huge amount of music. It's the salivating dream of everyone from Spotify to Pandora, though Sirius XM Radio is actually pulling it off—and beating everyoneelse by a longshot.
But is Sirius a long-term survivor? For now, there's something to clap about. At a top level, recent-quarter profits (yes, profits) moved to a sizable $173.3 million, while Sirius added 452,147 net subscribers in just three months.
Suddenly, aggregate subscriber levels have pushed past 21 million, a record. “Demand for satellite radio continues to grow, with gross [subscriber] additions reaching the highest level of any quarter since the merger of Sirius and XM," CEO Mel Karmazin said.
So, thank you Howard? Stern is undoubtedly helping this picture, gargantuan compensation package and legal battles notwithstanding (he wants more options and money). But Karmazin mostly pointed to a recovering automobile industry, which means more OEM installations at dealerships. That may be more important, and Karmazin expects to add a total of 1.6 million net subscribers by year-end.
Meanwhile, Wall Street is responding positively, despite more bullish expectations. Shares of SIRI are up in early trading, and pushing past $2, a far cry from penny-stock days of old. But Sirius still has 'serious' debt management issues—the company's debt balance is 3.7x that of earnings, down from 5.2x last year. Sirius just used $75 million to assume a pile of those IOUs.
But is Sirius a long-term survivor? For now, there's something to clap about. At a top level, recent-quarter profits (yes, profits) moved to a sizable $173.3 million, while Sirius added 452,147 net subscribers in just three months.
Suddenly, aggregate subscriber levels have pushed past 21 million, a record. “Demand for satellite radio continues to grow, with gross [subscriber] additions reaching the highest level of any quarter since the merger of Sirius and XM," CEO Mel Karmazin said.
So, thank you Howard? Stern is undoubtedly helping this picture, gargantuan compensation package and legal battles notwithstanding (he wants more options and money). But Karmazin mostly pointed to a recovering automobile industry, which means more OEM installations at dealerships. That may be more important, and Karmazin expects to add a total of 1.6 million net subscribers by year-end.
Meanwhile, Wall Street is responding positively, despite more bullish expectations. Shares of SIRI are up in early trading, and pushing past $2, a far cry from penny-stock days of old. But Sirius still has 'serious' debt management issues—the company's debt balance is 3.7x that of earnings, down from 5.2x last year. Sirius just used $75 million to assume a pile of those IOUs.
