SiriusXM reported it closed out the first quarter with more than 30 million subscribers, we reported this week. Self-pay additions, meaning those who subscribe on their own and not through a new or leased car deal, improved by 348,000 to 24.6 million.
That’s compared to 394,000 million self-pay additions in the first quarter of 2015.
The market was initially unimpressed by the news. The stock closed lower on the news on Monday. Tuesday, the stock closed at $3.86 and Wednesday, it rose 6 cents to close at $3.92.
But that doesn’t mean growth is peaking, according to Motley Fool, which says there are 80M+ cars with factory-installed satellite radio receivers, meaning Sirius or XM are “dormant” in some 50M of those.
Penetration rates will rise as more cars come with factory-installed satellite radio as part of their connected vehicle infotainment package, replacing older vehicles sporting traditional AM/FM tuners. SiriusXM predicts in 10 years, 180 million cars on the road will have satellite radio receivers.
Motley Fool points out that SiriusXM has been able to grow as it has steadily raised its subscription rates. Improving advertising trends suggest average revenue per user will keep inching higher.
We’ve reported the company says its push into telematics is a way to carve a path for future relevance and growth as well.