SiriusXM Will Raise Rates 3.5% In January
The price for consumers will go up 50 cents to $14.99 a month, CEO Jim Meyer told analysts this morning in a conference call to discuss Q3 earnings. Although this was a “difficult decision,” he says, SiriusXM‘s satellite radio customers see value in the service and the rate hike “will not significantly impact retention next year.” The disclosure followed the release of Q3 earnings results that sent the company’s stock down 2.8% in pre-market trading. SiriusXM generated $62.9M in net income, down 15.6% vs the period last year, on revenues of $961.5M, +10.9%. Analysts expected revenues to come in higher, at $969.7M. Earnings at 1 cent a share also were short of the 2 cents the Street anticipated. The company ended up with 25.58M subscribers, up 513,078 from June. Execs say the satellite service is still flying. They raised their forecast for net subscriber additions this year to 1.6M from 1.5M, and revenue estimates to $3.77B from $3.7B. They also predict 2014 revenues to hit $4B. Meyer says he’s optimistic due to “continued growth in new automobile sales and an increasing number of existing self-pay subscribers selling their cars and rotating back into our trial funnel.”
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