Sirius XM Radio Inc(NASDAQ:SIRI) yesterday reported Q3 revenues that have exceeded expectations, propelled by strong subscriber growth.
Sirius has posted revenue amounting to $867 million for the quarter, up 14% from a year back, and slightly ahead of the Street at $865.6 million. Adjusted EBITDA was $245 million, up 24%. Net income came up to $75 million, equivalent to 1 cent each share, including a loss of $107 million on extinguishment of debt.
The satellite radio service provider added 446,000 net new subscribers in the quarter, increasing the total to 23.4 million.
For the year 2012, the company sees net adds of 1.8 million, with revenue amounting to $3.4 billion, in line with the Street. The company sees full year adjusted EBITDA of total $900 million and free cash flow of $700 million.
CEO of Sirius XM, Mel Karmazin said in a statement that the company has delivered a very strong third quarter for its shareholders, with 446,000 net subscriber additions, double digit growth and record levels of income, adjusted EBITDA and free cash flow. He also said that the company has generated more free cash flow in the first nine months of this year than in any full year in its history. The company has used the cash to decrease its debt.
Karmazin has taken note that after the repurchase of $868 million of debt in the quarter, Sirius XM closed the quarter with $556 million of cash.
Karmazin said that he and his team is excited about the increase in subscriber guidance to 1.8 million net additions that were reported earlier this month, since the company believes in growth in the fourth quarter will continue. The company continues to make investments particularly in R&D, infrastructure, programming and customer care. The company has declared these investments will reward its shareholders in the years to follow.
Shares of SIRI ended higher by 1% after soaring as much 6% to $2.96 in Thursday’s session. The stock is up 1.42% in the pre-open session. The stock recently made a 4-year high of $2.97 and has risen 55% so far this year.