SIRIUS XM Adds 1.66M Clients in FY13 - Analyst Blog


One of the leading satellite radio companies in the U.S. - SIRIUS XM Radio Inc. ( SIRI ) - reported 1.66 million subscriber additions in fiscal 2013, significantly exceeding its guidance of 1.60 million customers.

Such robust growth in subscribers is mainly attributed to increased automobile sales and the continuous launch of innovative products. SIRIUS XM gained approximately 1.66 million subscribers in fiscal 2013 as compared with 2 million subscribers added in the last year. Moreover, the company gained 1.5 million Self-pay net additions as compared with 1.66 million in the prior year.

According to the new deal with the company's major customer, General Motors, the auto giant stopped the payment of promotional money to SIRIUS XM. This is expected to result in the loss of some paid promotional customers. Furthermore, the total subscriber base at the end of fiscal 2013 was 25.56 million as compared with 25.58 million in the prior year.

In July, SIRIUS XM entered into a partnership with AT&T Inc. ( T ) to offer emergency support, stolen vehicle tracking and roadside assistance to all connected Nissan Motors cars in North America.

A solid product portfolio coupled with strong business relationships with different car manufacturers like Ford Motor Co. ( F ) and Nissan has helped the company raise its 2014 fiscal subscriber outlook.

Recently, Liberty Global Inc. ( LBTYA ) has decided to acquire the remaining 47% stake from SIRIUS XM. Per the deal, in a tax-free transaction, each share of SIRIUS XM will be converted into 0.076 shares of a new issue of Liberty Media Series C common stock. The existing Series A and Series B shareholders of Liberty Media will get 2 shares in the Series C stocks for each share they possess. The deal is subject to the approval of a special committee of independent directors and public stockholders of SIRIUS XM, other than Liberty Media.

Currently, SIRIUS XM has a Zacks Rank #2 (Buy).

FORD MOTOR CO (F): Free Stock Analysis Report

LIBERTY GLBL-A (LBTYA): Free Stock Analysis Report

SIRIUS XM HLDGS (SIRI): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: F , LBTYA , SIRI , T

More from

Related Videos

Visualizing Healthcare MG
Visualizing Healthcare MG           
Power on/Power Off IPC
Power on/Power Off IPC              
Spot the Dropout RRC
Spot the Dropout RRC                
Power on/Power Off
Power on/Power Off                  



Most Active by Volume

  • $10.50 ▲ 3.04%
  • $29.22 ▲ 4.62%
  • $16.36 ▼ 0.49%
  • $113.29 ▲ 0.33%
  • $2.39 ▲ 4.82%
  • $5.78 ▲ 0.87%
  • $105.62 ▼ 0.02%
  • $28.42 ▲ 2.53%
As of 8/28/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by