SiriusXM says it ended 2013 with 25.56 million subscribers, reporting 1.66 million net subscriber additions in the year, exceeding its recently raised guidance of 1.6 million net additions. Self-pay net additions in 2013 were 1.5 million for the full year, bringing self-pay subscriptions to over 21 million.
The company also issued 2014 subscriber and free cash flow guidance and reiterated its 2014 revenue and adjusted EBITDA guidance. SIRI, which stood by its 2014 revenue forecast of more than $4 billion, said it expects net subscriber additions of 1.25 million this year. Analysts were expecting revenue of $4.15 billion in 2014, according to Thomson Reuters I/B/E/S. Adjusted EBITDA is expected at $1.38 billion.
“SiriusXM had an outstanding 2013, and we expect to meet or exceed all other guidance we have provided for the year. Automotive distribution is hitting on all cylinders and an increasing number of households, at all income levels, are subscribing to SiriusXM. In a world where consumers have many choices, millions of subscribers continue to love our unmatched and easily affordable lineup of exclusive talk, live news, major sports events, and commercial free and curated music channels,” said Jim Meyer, SiriusXM CEO.
“With our leverage at year end under 3.5x adjusted EBITDA and our interest coverage at more than 5x, the company is very conservatively capitalized. Our stable subscriber base and growing profitability allows us to raise our target leverage ratio to 4x adjusted EBITDA, providing increased flexibility for capital returns to stockholders and acquisition opportunities,” added David Frear, SiriusXM’s Chief Financial Officer.