SiriusBuzz http://siriusbuzz.com All Things SiriusXM Satellite Radio Fri, 24 Apr 2015 20:33:52 +0000 en-US hourly 1 Jaguar and Land Rover Expand Deal With SiriusXM http://siriusbuzz.com/jaguar-and-land-rover-expand-deal-with-siriusxm.php http://siriusbuzz.com/jaguar-and-land-rover-expand-deal-with-siriusxm.php#comments Mon, 06 Apr 2015 20:26:48 +0000 http://siriusbuzz.com/?p=21110 → Read More]]> Jaguar Land RoverJaguar Land Rover North America and SiriusXM have announced Jaguar Land Rover has selected Sirius XM Connected Vehicle Services Inc., a subsidiary of SiriusXM, to provide call center support for safety and security services to vehicle occupants using its Jaguar InControl® and Land Rover InControl® infotainment systems.

The Jaguar and Land Rover InControl suite of technologies provides vehicle owners with an array of advanced driver assistance systems including emergency response contact as part of the available InControl Remote & Protect™ system. SiriusXM will provide Jaguar and Land Rover vehicle owners with support for personal safety and security services, including:

  • Automatic Crash Notification (ACN): Automatically signals a SiriusXM Response Specialist to assist the vehicle’s occupant with notifying emergency responders in the event of an accident, provide the vehicle’s location, and communicate with the vehicle’s occupant until help arrives.
  • SOS/E-Call: Gives the vehicle’s occupant the ability to contact a SiriusXM Response Specialist via an in-vehicle S.O.S. button during an emergency.

Jaguar Land Rover is expected to introduce InControl™ to the U.S. market beginning with the delivery of select 2016 model year vehicles.  Owners will receive a 4-year subscription to SiriusXM supported safety and security services when purchasing any 2016 model year vehicle equipped with InControl Remote & Protect™.

This deal is yet another indication of the initiatives beyond satellite radio that SiriusXM is trying to develop, market, and expand.  SiriusXM has a desire to be a value to auto makers and provide a partnership rather than just a service.   This deal is not as big as the relationship with Nissan, but does show growth for SiriusXM in this area of its businesses.  In addition, these types of deals help to give a pathway for satellite radio to remain relevant and more sticky with consumers.

Jaguar sells about 16,000 cars a year in the U.S. market, and Land Rover about 52,000.

 

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March Auto Sales Mixed – Still Good For SiriusXM http://siriusbuzz.com/march-auto-sales-mixed-still-good-for-siriusxm.php http://siriusbuzz.com/march-auto-sales-mixed-still-good-for-siriusxm.php#comments Mon, 06 Apr 2015 12:25:08 +0000 http://siriusbuzz.com/?p=21095 → Read More]]> U.S. auto sales in March of 2015 were a bit of a mixed bag if you look at the headlines, but growth is still happening, sales are on a pace for 17 million, and SiriusXM remains in a good position to install a large amount of satellite radios into new vehicles.

4-6 auto sales

With Q1 sales complete, overall sales stand at 9.93 million.  March of 2015 was easily the largest volume month of the year with sales at 1.537 million, well above the 1.251 million we saw in February.  For the auto sector, year over year comparisons are getting challenging.  The trajectory of growth is not as steep as it once was, but growth is indeed happening.

Nearly half of the cars sold in March were from manufacturers offering trailing subscriptions to satellite radio.  This means that the free trial that comes with the vehicles is not counted in the subscriber number.  These radios will only be counted as subscribers if the consumer elects to keep the service.  Only 12% of the cars sold in March came with subscriptions that were counted at the point of sale, while about 39% were counted at the time of vehicle manufacture.

Analysts anticipate that 2015 can deliver 17 million in sales, up from 16.5 million in 2014.  Stay Tuned!

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SiriusXm Provides Foundation For Nissan’s Connected Car http://siriusbuzz.com/siriusxm-provides-foundation-for-nissans-connected-car.php http://siriusbuzz.com/siriusxm-provides-foundation-for-nissans-connected-car.php#comments Mon, 06 Apr 2015 12:07:57 +0000 http://siriusbuzz.com/?p=21092 → Read More]]> 4-6 maximaSiriusXM and Nissan have announced that Nissan will launch NissanConnect Services powered by SiriusXM, in select 2016 model year Nissan vehicles, starting with Maxima, its all-new flagship sedan.  The all-new telematics program is Nissan’s first in-vehicle launch of SiriusXM’s connected vehicle services and will feature vehicle security, vehicle health monitoring, remote access services, and more.

Presented with an extensive package of available services powered by SiriusXM, NissanConnect Services will be one of the most feature-rich suites of connected vehicle services available to drivers today.

“SiriusXM is thrilled to be Nissan’s exclusive provider for this world-class suite of security, convenience, and remote features to match the driving needs of its customers,” said Larry Pesce, Group Vice President and General Manager, Connected Vehicle and Infotainment, SiriusXM. “Offering the support drivers want and need on the road, along with the critically-acclaimed satellite radio they love, builds on our long relationship with Nissan and its customers.”

Three levels of service provided by SiriusXM will debut on select 2016 model year Nissan vehicles, including:

  • NissanConnect Services: The base package will include Emergency Services including Automatic Collision Notification, Emergency Calling, and Stolen Vehicle Locator, as well as Maintenance Alerts such as Customized Messaging and Maintenance Reminders.
  • NissanConnect Services Premium: The mid-tier package includes all the features from the base package plus Remote Services including Remote Start and Remote Door Lock/Unlock, as well as Monitoring Alerts like Boundary Alert, Valet Alert and Curfew Alert.
  • NissanConnect Services Premium Plus: The top-tier package adds to the suite of services included in the base and premium packages by including a suite of Destination Services such as Assisted Search, Connected Search and Journey Planner.

Nissan has been one of the early adopters of the SiriusXM connected car services.  Other manufacturers, while offering some services from SiriusXM, have not made such a wide spread adoption of connected car options.  In concept, the Nissan program can become a showpiece for the advantages of utilizing SiriusXM for such services.

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SiriusXM Releases New iOS App – Version 3.0 http://siriusbuzz.com/siriusxm-releases-new-ios-app-version-3-0.php http://siriusbuzz.com/siriusxm-releases-new-ios-app-version-3-0.php#comments Thu, 19 Mar 2015 05:43:53 +0000 http://siriusbuzz.com/?p=21040 → Read More]]> There is hope for all of you SiriusXM iOS app users as your favorite satellite radio provider has finally sunk some thought and resources into their online listening experience.

siriusxm-app-home

This new app boasts features including speedier tune times, synced settings across devices, enhanced search, personalized recommendations, and social integration.

Although it may not be touted as a bullet point feature, gone are the days of using your pinky finger on those tiny little touch targets as the new app features large clickable areas that leave room for the fattest of fingers. Finally no more miss-clicks and accidental deletions!

siriusxm-app-channel

Sleek new channel pages, complete with album art and biography’s, feature the ability to share what you’re listening to via iMessage, Twitter, and Facebook.

siriusxm-app-customize

The new and improved customization screen makes it much easier for users to stream more of what they want.

New application settings also allow you to choose both your live and download audio quality, for those users on a tight data budget.

SiriusXM finally has an app with looks, usability, and functionality worthy of a company of their caliber. The most important question now is – will it work? As of today OnDemand episodes of my favorite shows are two days behind but, it hasn’t crashed yet so, that’s a good start.

Details and download information can be found in the App Store.

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Jeff Foxworthy and Larry The Cable Guy Team Up With SiriusXM http://siriusbuzz.com/jeff-foxworthy-and-larry-the-cable-guy-team-up-with-siriusxm.php http://siriusbuzz.com/jeff-foxworthy-and-larry-the-cable-guy-team-up-with-siriusxm.php#comments Mon, 16 Mar 2015 14:26:34 +0000 http://siriusbuzz.com/?p=21037 → Read More]]>

Jeff Foxworthy and Larry the Cable Guy will not only contribute, but serve as executive producers of  a new channel of exclusive comedy material that listeners will not hear anywhere other than at the comedy stars’ live comedy shows.  Comedy channels have been a staple on Sirius XM since its inception.  They oft provide a needed break from news programming and music channels.  Foxworthy and Larry are well known and respected in Comedy and bring a brand of humor that is a great match for the satellite waves.  The new comedy channel will debut later this year.

Jeff Foxworthy is one of the most respected and successful comedians in the country.  He is the largest selling comedy-recording artist in history, a multiple Grammy Award nominee and best-selling author of more than 26 books. He was recently inducted into the Georgia Music Hall of Fame for his accomplishments.  Jeff will once again be hosting the FOX television game show Are You Smarter Than A 5th Grader, set to premiere in 2015.

Larry the Cable Guy is a multiplatinum recording artist, Grammy nominee, Billboard award winner and one of the top comedians in the country.  His television shows, comedy and variety specials have all been ratings successes, and he has appeared in many successful films, including as the voice of the beloved Mater in the Golden Globe Award-winning animated feature film, “Cars.”

The new channel from Jeff Foxworthy and Larry the Cable Guy joins a robust comedy lineup on SiriusXM featuring Comedy Central Radio, Jamie Foxx’s The Foxxhole channel, Carlin’s Corner, Laugh USA, and Raw Dog Comedy Hits and more.

SiriusXM teaming up with the duo is a natural solution that could well benefit both parties in this equation.  Foxworth and Larry The Cable Guy get to continue to expand their brand and awareness, while SiriusXM gets to capitalize on that same brand and awareness.  The biggest winner may well be satellite radio subscribers that receive unparallelled content that is simply not available elsewhere.

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SiriusXM Prices Offering For $1 Billion In Senior Notes http://siriusbuzz.com/siriusxm-prices-offering-for-1-billion-in-senior-notes.php http://siriusbuzz.com/siriusxm-prices-offering-for-1-billion-in-senior-notes.php#comments Fri, 06 Mar 2015 18:32:37 +0000 http://siriusbuzz.com/?p=21008 → Read More]]> money-dollar-signSiriusXM initially announced an offering of $750 million in senior notes to be due in 2025.  Within hours, the number grew to $1 billion in senior notes at an impressive 5.375% that would come due in 2025.  It could be that the appetite for these notes was such that the company saw the ability to raise the stakes a bit.

SiriusXM has been very good about debt over the last few years, and has been adept at maintaining a good debt to EBITDA ratio.  The company has massive revenues, and frankly, borrowing money at a bit over 5% is likely a very wise move.  SiriusXM has used such debt offerings to pay down higher debt and to buy back shares.  Last year the company spent $2.5 billion to buy back 739,000,000 shares.

SiriusXM currently carries about $4.5 billion in debt with most notes being due after 2020.  The company has carried a very disciplined approach to its debt as well as its share buyback program.  Some investors do not like the idea of debt, but smart debt can give a company like SiriusXM a great deal of operating latitude at a very reasonable cost.

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SiriusXM Sues To Protect Consumers http://siriusbuzz.com/siriusxm-sues-to-protect-consumers.php http://siriusbuzz.com/siriusxm-sues-to-protect-consumers.php#comments Fri, 06 Mar 2015 18:07:53 +0000 http://siriusbuzz.com/?p=21006 → Read More]]> new-gavelIn an interesting development, SiriusXM has sued “John Doe” in an effort to protect consumers from what appears to be a fraudulent scheme by a party that uses a similar phone number to that of SiriusXM’s customer service department to get consumer information, and take advantage of unsuspecting consumers.

SiriusXM’s customer service line is 888-539-7474

The John Doe number is 800-539-7474

SiriusXM alleges that consumers that dial the John Doe number are being asked for personal information, being promised gift cards, and other services.  Consumers mistakenly think that it is SiriusXM doing these spamming techniques, and the hard sell of the call leaves a bad taste in the mouths of consumers and degrades the reputation of SiriusXM.

Indeed, I called the number myself and was promised a $100 Wal-Mart gift card.  I asked, “Is this SiriusXM?”  I was told that I was selected for the “rewards department” and that once finished there I would be “transferred back over”

The essence of the suit is that John Doe is using a mis-dialed number to give the consumer the impression that they are speaking to SiriusXM when in fact they are not.  SiriusXM is seeking damages in excess of $50,000.

Wanna have some fun?  Give this “John Doe” company a call and pull their chain a bit.  See if they admit that they are not SiriusXM’s customer service.

While SiriusXM has had its challenges as it relates to customer service, this experience is an unfair practice by an unnamed party that hurts both SiriusXM and consumers!

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February Auto Sales At 1.25 million http://siriusbuzz.com/february-auto-sales-at-1-25-million.php http://siriusbuzz.com/february-auto-sales-at-1-25-million.php#comments Wed, 04 Mar 2015 16:24:56 +0000 http://siriusbuzz.com/?p=21001 → Read More]]> Auto sales in February were up over January, and up over what was seen last year, but overall there was disappointment in the air.  With record snow fall in many parts of the country,  auto sales were bound to be impacted.  Overall, auto sales were a bit above 1.25 million and had a SAAR of 16.2 million.  Analysts were looking for a SAAR of 16.7 million.

For SiriusXM, the numbers that were delivered were still decent news.  The satellite radio provider garners most of its subscribers from the trials offered to consumers when a new car is purchased.  About half of the cars sold last month are not counted as subscribers even within the promotional period.  The other half are counted as subscribers either when the car is manufactured or when the car is sold.

Analysts are anticipating that new car sales in 2015 could be as high as 17 million.  Last year sales were just below 16.5 million.  The growth is slowing a bit and the peak will happen either here in 2015 or in 2016.  Currently sales are at about 2.4 million in 2015.  In 2014, the first two months were at about 2.2 million.  Essentially, sales are about 200,000 ahead of last years pace, or about 9% better.

3-4 auto sales

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SiriusXM Beats The Street – Stock Hits 52 Week High http://siriusbuzz.com/siriusxm-beats-the-street-stock-hits-52-week-high.php http://siriusbuzz.com/siriusxm-beats-the-street-stock-hits-52-week-high.php#comments Thu, 05 Feb 2015 23:17:23 +0000 http://siriusbuzz.com/?p=20950 → Read More]]> support3SiriusXM announced its quarterly earnings today and the company did not disappoint.  Though it was already disclosed that the company had met or exceeded all guidance, the big news was that instead of posting the expected earnings of 2 cents per share, SiriusXM hit 3 cents per share.  Highlights included:

  • 2014 Revenue Climbs 10% to $4.18 Billion
  • Net Income Increases 31% to $493 Million in 2014
  • Record Adjusted EBITDA of $1.47 Billion in 2014, up 26%
  • 2014 Free Cash Flow Reaches Record $1.16 Billion, up 25%
  • $2.5 Billion of Stock Repurchased in 2014

SiriusXM’s quarter included record revenue of $1.09 billion and $4.18 billion for the fourth quarter and full-year, respectively.  Net income was $143 million Q4 and $493 million for the full-year.  This beat the previous year by a healthy margin. Net income per diluted common share was $0.03 and $0.08, respectively, in the fourth quarter and full-year 2014, versus $0.01 and $0.06 in the fourth quarter and full-year 2013.   SiriusXM’s Adjusted EBITDA was $381 million and $1.47 billion, respectively.

SiriusXM’s 2015 guidanjce is as follows:

  • Net subscriber additions of approximately 1.2 million,
  • Revenue of approximately $4.4 billion,
  • Adjusted EBITDA of approximately $1.6 billion, and
  • Free cash flow of approximately $1.25 billion.

The company now has 5,643,849,000 fully diluted shares as share buyback’s in 2014 continued.  The company bought back 739 million shares during the year and is committed to repurchasing another $1.7 billion worth of stock.  Overall, in the last 2 years, the company has retired approximately 1.3 billion shares.  SiriusXM has a healthy cash position of $147.7 million.

SiriusXM also reported stable churn of 1.8%, and improvement over the 1.9% we saw last year.  The company reported an Average Revenue Per user of $12.49 and a subscriber acquisition cost of $33 per share.  The customer service and billing expenses per average subscriber were $1.07, a slight uptick.

An item of concern in the quarterly report was the decline in the companies ability to convert trial subscribers to self-paying subscribers.  The conversion rate is now down to 40%.  This is the lowest conversion rate that I have seen.  the number is less of a concern when car sales are growing, but should be monitored by investors.  the conversion speaks to price elasticity and the “stickiness” of the product.

Last year at this time SiriusXM investors were in the throws of debate about a buyout offfer from Liberty media.  Ultimately Liberty pulled its offer off of the table.  ironically, the stock buyout was at about the $3.69 level we are currently seeing as a 52 week high.  Thus far, 2015 has not delivered any excitement on the Liberty media front, but has seen very positive auto sales.

From a technical standpoint, the new 52 week high sets up a bullish stance for SiriusXM.  In fact, the bullishness is such that a small run could be in the making.  Positive news going forward could stoke the fires.  The channel that SiriusXM has traded in all year is, for the moment, broken.  If SiriusXm can work through $3.75, there is a distinct possability of testing the $3.80’s.  For the first time in months the technicals are showing decent strength across the board.  stay Tuned!

 

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Matthew Harrigan Cautious On SiriusXM Earnings http://siriusbuzz.com/matthew-harrigan-cautious-on-siriusxm-earnings.php http://siriusbuzz.com/matthew-harrigan-cautious-on-siriusxm-earnings.php#comments Wed, 04 Feb 2015 16:31:01 +0000 http://siriusbuzz.com/?p=20948 → Read More]]> quarterly resultsAs conference call day inches closer, analysts are beginning to weigh in on the prospects of the Q4 earnings report from SiriusXM.  Wunderlich’s Matthew Harrigan is maintaining a Hold rating and a $3.50 price target.  While some investors may not like this rating, it is a prudent move on Harrigan’s part.  Many analysts wait until after the call to make bolder moves in models and assumptions.  Harrigan is looking for:

  • Revenue of $1.079 billion vs. street average of $1.8 billion
  • Operating income of $356.3 million
  • Operating margin of 33%
  • Free Cash Flow of $324 million

Harrigan sees some exposure to competition.  Manufacturers are seeking to expand on the “connected car” concept, and while that does not exclude SiriusXM, it does bring other players into the dashboard.  A key aspect of this for SiriusXM is locking up exclusivity where it can, and being as relevant as possible in other technology areas such as traffic, weather, navigation, etc.

Matthew Harrigan has traditionally been pretty accurate in assessing this space.  In my opinion the call will be well received tomorrow, but there will not be any earth shattering revelations that drive the stock price.  Auto sales in January were robust, so the start to the year has potential.  Stay Tuned!

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