Sirius XM Holdings Inc (SIRI)

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Sirius XM Profit Climbs

Source: Dow Jones News
Sirius XM Holdings Inc. reported its profit climbed 62% in the first quarter, with its revenue growing as the number of subscribers increased, prompting the company to pump up its estimates for subscriber additions for the year.

For 2016, Sirius XM raised its subscriber forecast, projecting to add about 1.6 million subscribers compared with prior guidance of 1.4 million. That would continue to set the company on track to end the year with about 31 million subscribers.

Sirius XM recently said it added 465,000 net new subscribers in the first quarter to reach 30.1 million total subscribers. The number of self-paying subscribers—those who don't get the service as part of a promotion—increased by 348,000 to 24.6 million.

Monthly churn, or the rate at which subscribers left, edged up to 1.9% in the quarter ended March 31, from 1.8% a year ago.

Over all, Sirius XM's profit increased to $171.3 million from $105.7 million. On a per-share basis, earnings rose by a penny to three cents a share. Revenue grew 11% to $1.2 billion.

Analysts polled by Thomson Reuters had forecast three cents a share in earnings on $1.18 billion in revenue.

During the quarter, the company spent $588 million to repurchase 159 million shares of its common stock.

Write to Joshua Jamerson at [e-mail]


(END) Dow Jones Newswires

April 28, 2016 09:15 ET (13:15 GMT)

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