Boston, MA 04/25/2014 (wallstreetpr) – Sirius XM Holdings Inc. (NASDAQ:SIRI) posted its first quarter earnings yesterday recording a fall in profits but said that its revenue and subscribers expanded during the period.
Profits Fell But Subscribers and Revenue Posted Growth
The company’s total number of subscribers grew to 25.8 million at the end of the quarter, reporting a 6.1% growth than the same quarter previous year. The net subscriber additions during the quarter were 266,799. The monthly churn declined from earlier 2% to 1.9%. The company’s profits fell from $123.4 million to $94 million, and on a per share basis came in $0.02, which is in-line with that of the analysts’ expectations.
Sirius XM Holdings Inc. (NASDAQ:SIRI) noted that the decline in profit relates to the costs associated with Liberty Media stock buyback agreement and adjustments due to Liberty’s abandoned plans to buy out the company. However, revenue grew 11% to $999.7 million on account of increased subscriber revenue to the tune of $851.4 million, an 8.7% increase. Moreover, the revenue exceeded the analysts’ expectation of $995 million.
The operating expenses of the company rose 15% to $750.3 million as its cost increased towards royalties and revenue share and expenses related to subscriber costs and marketing grew during this time.
To Restart Share Repurchase Program
Sirius disclosed last month that it will recommence the share buyback program after Liberty Media Corp abandoned from the deal to buy the left out stake in the company. The satellite radio provider has last augmented its buyback plan in October by $2 billion. Yesterday, the company said that it is slated to buy back 93 million shares from Liberty in exchange of $340 million on Friday. The plan will leave the company with $1.7 billion remaining on its share repurchase authorization.
The shares of Sirius XM Holdings Inc. (NASDAQ:SIRI) closed marginally higher on the previous trading session
