Sirius XM Holdings Inc. (NASDAQ:SIRI) raised its subscriber and revenue guidance as the new subscribers additions surged in the first quarter of 2015. For the fiscal, the company now expects net subscribers’ additions to come at 1.4 million compared to previous forecast of 1.2 million additions. The revenue forecast is of $4.47 billion, up from the initial guidance of $4.4 billion. The free cash flow is expected to come around $1.25 billion.
Sirius reported that in the three months ended March, the net new subscribers surged 61% compared to the same period, a year ago. The total subscribers stood at 27.7 million compared to 25.8 million a year ago. The monthly churn dropped to 1.8% from 1.9% in the same quarter, a year ago. The net profit came at $105.7 million, up from $94 million, a year earlier. It came below the analysts estimates of three cents per share. The revenue jumped 8.3% to $1.08 billion, but it was lower than analysts forecast of $1.09 billion. The subscriber revenue surged 7.1% to $911.5 million.
The expert speaks
Jim Meyer, the Chief Executive of Sirius XM Holdings Inc. (NASDAQ:SIRI), said that the fiscal is off to a strong start. The management has raised the subscriber forecast to almost net additions of 1.4 million and revenue guidance to almost $4.47 billion after posting an impressive 1Q for self-pay subscriber growth since 2008. The results reflect that the company’s varied content is resonating with increased number of consumers every day. The free cash flow surged 24% to $276 million.
Meyer added that in April, SiriusXM have aired impressive live shows from the popular Coachella music festival. Also, it brought exclusive programming of much awaited Masters Golf tournament. The future plans include launch of new channels and to add exclusive talent, channels and shows that are liked by the growing base of self-pay customers.