Sirius XM Radio released subscriber metrics prior to the market open today. The news was outstanding and should help reverse the bearish trend the equity has seen over the pat week.
Among the numbers released by the company was the addition of 583,249 net subscribers, self pay churn of 1.8%, and an auto take rate of 46.7%.
With these results Sirius XM's Mel Karmazin increased subscriber guidance for the third time this year. The company now guides to net subscriber additions for 2010 of 1.1 million. With over 19.5 million subscribers Sirius XM is poised to break through 20 million this year.
Sirius XM CEO Mel Karmazin stated, "Our subscriber results mark the best of gross additions, deactivations, and net additions since the merger of Sirius and XM."
I have long stated that OEM sales of 1 million cars per month delivers positive metrics across the board for Sirius XM. Numbers such as this demonstrate that Sirius XM should perform quite well at auto sales of 11 million or more for 2010.
Position - Long Sirius XM