Sirius XM Still Adding Subscribers Despite Slow New-car Sales
New York - Nov 17, 2011 - Sirius XM Radio in the third quarter of 2011 set new quarterly company records, including total revenues of $764.8 million, EBITDA of $197.3 million, a 6.8 percent drop in subscriber acquisition costs and the fourth consecutive quarter of gross subscriber additions, in excess of 2 million. The company ended the quarter with a total of 21.4 million subscribers, on track to end the year around the 21.7-million mark.
Overall, subscriptions grew by 1.5 million net additions since the third quarter of 2010, contributing to a 5.9 percent year-over-year increase in total revenue, from $722.5 million.
On the automotive front, sales of new vehicles, which drive new subscriptions for the most part, were moribund through most of the reporting period, only picking up slightly in September. Yet Sirius XM recorded 2.1 million gross sub additions during the period. This was partially due to a slightly higher factory-installation rate of approximately two-thirds of all new vehicles sold in the U.S., versus approximately 62 percent in the third quarter of 2010. Asked about the company's conversion rate on used-cars, President of Operations and Sales James Meyer on Nov. 1 said, "It's not as high as new cars. In fact it tracks in the mid to high 30 percents right now ... I don't believe it'll ever be as good as new cars, but I do believe it will be very, very strong and a good contributor for our growth for many years."
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