SiriusXM beats estimates on Q3 revenue and earnings

SiriusXM Holdings Inc. (SIRI) reported better-than-expected revenue and earnings for the third quarter of 2018. As of 12:05 pm ET, the stock is up 0.08%.

Total revenues increased 6% to $1.5 billion from the same period last year, driven by increases in subscribers and ARPU. Net income grew 24% to $343 million during the quarter versus the same period last year. The increase included a loss related to the Pandora investment. Diluted EPS rose to $0.07 per share from $0.06 last year.

During the third quarter, SiriusXM benefited from strength in subscriber additions and churn performance. The company added 298,000 net new self-pay subscribers in the quarter to end the period with approx. 28.5 million self-pay subscribers.

Self-pay monthly churn improved 12 basis points to 1.8% year-over-year. Total net additions were 198,000, leading to around 33.7 million SiriusXM subscribers at quarter-end.

In September, SiriusXM agreed to acquire Pandora Media for about $3.5 billion in an all-stock deal that is expected to close in the first quarter of 2019. The combined entity is expected to generate over $7 billion in pro forma revenue in 2018 along with growth opportunities over the long term.

Pandora to be acquired by SiriusXM to create audio entertainment giant

SiriusXM raised its 2018 guidance for revenue, adjusted EBITDA and self-pay net subscriber additions. Revenues are now expected to be approx. $5.72 billion while adjusted EBITDA is expected to be approx. $2.2 billion. Self-pay net subscriber additions are expected to be approx. 1.27 million in 2018.