SiriusXM Radio (NASDAQ: SIRI) today announced third quarter 2012 financial and operating results, including revenue of $867 million, up 14% from third quarter 2011 revenue of $763 million.  Net income for the third quarter 2012 and 2011 was$75 million and $104 million, respectively, including a loss on extinguishment of debt of $107 million in the third quarter of 2012.  Adjusted EBITDA for the third quarter of 2012 was $245 million, up 24% from $197 million in the third quarter of 2011.

"SiriusXM delivered a very strong third quarter for our shareholders, with 446,000 net subscriber additions, double-digit growth, and record levels of revenue, adjusted EBITDA, and free cash flow.  The Company has produced more free cash flow in the first nine months of this year than in any full year in its history, and we've used this cash to reduce our debt to its lowest level since the merger of Sirius and XM," noted Mel Karmazin, Chief Executive Officer, SiriusXM.

Additional highlights from the third quarter include:

  • Record subscriber growth.  Self-pay net subscriber additions improved by 2% year-over-year to 371,000, pushing the self-pay subscriber base to an all-time high of 19.0 million subscribers.  The total paid subscriber base rose to a record high 23.4 million subscribers. Strong auto sales helped lift total paid and unpaid trial inventory by approximately 115,000 from the second quarter of 2012 to 6.2 million.
  • Churn and conversion stable.  Self-pay monthly churn was 2.0% in the third quarter of 2012, compared to 1.9% reported in the third quarter of 2011.  New vehicle consumer conversion rate was 44% in the third quarter of 2012, unchanged from the third quarter of 2011.
  • Free cash flow grows to record level.  Free cash flow was $195 million in the third quarter of 2012, an improvement of 159% from the$75 million recorded in the third quarter of 2011.


2012 GUIDANCE

The Company confirmed its 2012 subscriber, revenue, adjusted EBITDA and free cash flow guidance:

  • Net subscriber growth approaching 1.8 million,
  • Revenue approaching $3.4 billion,
  • Adjusted EBITDA of approximately $900 million, and
  • Free cash flow of approximately $700 million.