As a seasoned gamer with decades of experience under my belt, I’ve seen the rise and fall of many digital giants. The news about SiriusXM, the audio entertainment titan, losing subscribers doesn’t exactly surprise me. It’s like watching an old-school RPG character lose health points in a tough level.
SiriusXM, known for hosting Howard Stern, announced on Thursday that it experienced a decrease of 100,000 self-pay subscribers in its satellite radio sector during the second quarter. This loss was smaller than the 130,000 decline seen in the same period last year. The reduction was mainly due to lower customer cancellations (voluntary churn) and increased sales from car manufacturers (higher automaker volumes), although it was partially counteracted by a rise in vehicle-related cancellations, fewer new subscriptions from vehicles, and lower streaming account acquisitions.
SiriusXM saw a decrease of 73,000 paid promotional subscribers in the recent period, primarily because some automakers opted for free trial subscriptions instead. However, in Q2 of 2023, the company managed to gain 171,000 new paid subscribers.
In the most recent timeframe, there was a decrease of 173,000 subscribers, which is quite different from the growth of 39,000 subscribers observed during Q2 of 2023.
In the second quarter of this year (April-June), SiriusXM experienced a decrease of 41,000 self-pay subscribers on its Pandora streaming service, which was a reversal from an increase of 8,000 subscribers during the same period last year. By the end of June, the company had approximately 5.9 million self-pay customers using Pandora.
Under the leadership of CEO Jennifer Witz, SiriusXM’s Pandora and Off-Platform division generated an ad revenue of $528 million during the quarter, marking a 2% increase compared to the same period last year.
In the second quarter, SiriusXM recorded a total revenue of approximately $2.18 billion, which represented a 3% decrease. However, their net income slightly increased to around $316 million. As for the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), another measure of profitability, it remained constant at $702 million for the quarter.
Earlier this year, the company cut 160 jobs amid a push to become more “efficient” and “agile.”
In the previous year, Liberty Media, headed by President and CEO Greg Maffei and Chairman John Malone, suggested merging its Liberty SiriusXM tracking stock group with the leading satellite radio corporation, SiriusXM. At that time, Liberty had an 83% ownership in SiriusXM. The merger is anticipated to be finalized on September 9, following market close.
“As our transaction with Liberty Media draws to a close, I’m pleased to share that our financial performance has remained strong,” said Witz. “Our primary goal is to satisfy both our listeners and our investors. We aim to do this by utilizing our strong audio presence to create and explore new paths for expansion. By combining the distinctive voices and viewpoints from our extensive live programming in music, sports, and politics with innovative features and subscription options, we are well-positioned to seize the opportunities that lie ahead.”
Tom Barry, our new CFO, commented: “We’re persistently investing strategically in technology and automation, which not only lowers expenses but also boosts team productivity and elevates the quality of customer interaction.”
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2024-08-01 14:24