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Does SiriusXM hold the key to the future of radio?



Squashing popular belief that radio is nearing its death, satellite radio company SiriusXM recorded a 24% growth in Q3/2018 and expects a continual growth by $7 billion in the current fiscal, especially after its acquisition of Pandora.

In the third quarter of 2018, SiriusXM posted a revenue of $1.5 billion, a company record, and got 3,00,000 new subscribers making it a total of 33.7 million subscribers.

According to SiriusXM, the company’s net income totaled $343 million in the third quarter 2018 against $276 million during Q3/2017. Net income per diluted common share was $0.07 in the third quarter 2018, compared to $0.06 in the third quarter 2017. Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) grew 7% in the third quarter 2018 to a quarterly record of $589 million. Operating cash flow and free cash flow in the third quarter 2018 decreased (32)% and (34)%, respectively, to $352 million and $288 million, due to the Company’s previously announced one-time lump sum payment of $150 million to resolve all outstanding statutory license claims for sound recordings.

“SiriusXM’s standout third quarter saw continued strength in subscriber additions and churn performance while adjusted EBITDA reached a quarterly record-high $589 million. Our revenue growth, adjusted for the change in generally accepted accounting principles that was effective January 1st, totaled 8% in the quarter. In addition to our operational excellence, we were thrilled this quarter to announce an agreement to acquire Pandora Media, which we expect to close in the first quarter of 2019. With the end of the year in sight, we are increasing our full-year guidance for self-pay net additions, revenue and adjusted EBITDA,” said Jim Meyer, Chief Executive Officer, SiriusXM in the press release.

“We have a relentless focus on creating and curating content our subscribers will love — our limited-run Dave Matthews Band Radio was a perfect example. We also presented fiery live performances just for subscribers, like our recent show by The Killers in New York. We’ve added provocative talent in talk and sports, with a daily show from CNN’s Chris Cuomo, a new show from Hall of Famer Reggie Jackson, the return of Brett Favre’s popular show, and a new program highlighting women in sports hosted by journalist Christine Brennan and retired tennis pro Rennae Stubbs,” added Meyer.

Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world’s largest radio company measured by revenue and has approximately 33.7 million subscribers. SiriusXM creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment, and a wide-range of Latin music, sports and talk programming. SiriusXM is available in vehicles from every major car company and on smartphones and other connected devices.

On September 24, 2018, Sirius XM Holdings Inc. had announced acquisition of Pandora Media in an all-stock transaction.

“We have tremendous respect for Pandora and their team for building a massively popular consumer offering, and we believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses. The addition of Pandora will diversify SiriusXM’s revenue streams with the U.S.’s largest digital ad-supported audio offering, broaden our technical capabilities, and represents an exciting next step to expand our reach out of the car even further,” said Meyer in the release.

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