SiriusXM’s Q2 earnings were rosy as it posted a $3 billion income-tax benefit. The satcaster boasted revenue of $838 million, up 13% over Q2 2011 revenue of $744 million. Net income for Q2 2012 and 2011 was $3.1 billion and $173 million, respectively. Adjusted EBITDA for the quarter was $237 million, up 28% from $185 million in Q2 2011.
The company reported a profit of $3.1 billion, or 48 cents a share, up from $173.3 million, or three cents, a year earlier.
“SiriusXM continued its exceptional performance in the second quarter, adding over 600,000 subscribers, which represents a post-merger record, despite the mixed macroeconomic trends. We also attained a record-level free cash flow of $230 million – the highest single quarterly free cash flow figure in SiriusXM’s history. We are very pleased with the strong operating results we have delivered since the merger, especially our performance in 2012, as we have grown revenue, tightly controlled expenses, and produced substantial growth in adjusted EBITDA and free cash flow,” said Mel Karmazin, SiriusXM CEO. “We’ve also raised our subscriber, revenue, and adjusted EBITDA guidance as the Company exceeds its targets and as subscribers demonstrate how much they love our great content. We are excited to deliver our new SiriusXM On-Demand service to our subscribers via the internet and smartphones, and our program to launch a personalized music feature via these same channels by the end of the year is on track.”
Self-pay net subscriber additions improved by 28% YOY to 463,000, pushing the self-pay subscriber base to an all-time high of 18.7 million subscribers. The total paid subscriber base rose to a record high 22.9 million subscribers. Strong auto sales helped lift total paid and unpaid trial inventory by some 400,000 from the first quarter to 6.1 million.
Monthly churn, or subscriber turnover, was 1.9% for self-pay customers, unchanged from a year-ago.
The new vehicle consumer conversion rate was 45% in the second quarter of 2012, also unchanged from Q2 2011.
SAC, Per Gross Subscriber Addition, remained flat at $54 for the quarter. Higher subsidies related to increased OEM installations occurring in advance of acquiring the subscriber were offset by improved OEM subsidy rates per vehicle and a 14% increase in gross subscribers over Q2 2011.
2012 subscriber, revenue, adjusted EBITDA and free cash flow guidance:
–Net subscriber growth approaching 1.6 million,
–Revenue approaching $3.4 billion,
–Adjusted EBITDA of approximately $900 million, and
–Free cash flow of approximately $700 million.