Satellite radio company,
SIRIUS XM Radio Inc.
), has crossed the 25 million subscriber base with a record net
addition of 715,000 customers for the second quarter of 2013.
While the company's previous best was 622,042 customer additions
in the second quarter of fiscal 2012.
SIRIUS XM achieved a 15% growth rate in net subscriber addition
year over year while sequentially it increased by a whopping 58%.
Such robust growth in subscribers is mainly attributed to
increased automobile sales and the continuous launch of
SIRIUS XM gained approximately 1.17 million subscribers in the
first half of fiscal 2013 with an average of 583,945 customers
per quarter as compared with 1.03 million subscribers added
during the first half of fiscal 2012 with an average of 513,319
SIRIUS XM is continuously forming strategic partnerships with
premium automobile companies. Last month, SIRIUS XM started
offering the new Sync AppLink technology for
Ford Motor Co.
) vehicles. The technology will allow users to use voice command
to listen to their favorite channels while driving.
The new software is also available on
) devices and
) Android-based handsets. Hence, customers can access SIRIUS XM
programs from these devices without even turning on the satellite
A solid product portfolio coupled with strong business
relationships with the original equipment manufacturers has
helped the company to raise its 2013 fiscal outlook on net
subscriber addition by 100,000 to 1.5 million. Meanwhile, the
company has already achieved 78% of its target and is expected to
easily surpass the outlook by the end of the third quarter of
Currently, SIRIUS XM has a Zacks Rank #3 (Hold).
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