SiriusXM Reports 47% Spike in Quarterly Profits to $363 Million

Satellite radio giant SiriusXM reported quarterly net profits rose nearly 50% compared to a year ago, but that it also lost 96,000 self-pay subscribers in recent months.

The company reported on Tuesday (Oct. 31) that net income was $363 million, up from $247 million in the third quarter of last year, while revenues held roughly flat from a year ago at $2.27 billion for the quarter ended Sept. 30.

Chief executive Jennifer Witz said in a statement that the company’s investments in new product and technology upgrades — expected to be unveiled next week — will help grow Sirius’ subscriber base and business by helping customers find exclusive event content from top programs and artists, including Ed Sheeran and Wu-Tang Clan.

“Our content portfolio continues to differentiate us in the audio marketplace with exclusive access to live sports, talk, music, and one-of-a- kind content,” Witz said in a statement, calling the next-gen platform “a key component of our long- term vision for the company’s consumer offerings.”

“The ongoing enhancements to our user experience will ensure that our unique suite of content resonates with our audience in increasingly personalized ways,” she said. “This leading content and upcoming product upgrade will be paired with our unmatched business model, which we expect to continue delivering significant and growing free cash flow in the years ahead.”

The looming tech releases are geared toward improving “discoverability, personalization, and ease of use to both streaming and in-car subscribers,” according to a statement, and they will kick off with the unveiling of a new app, followed by in-car updates.

Investment in the app and updates was costly. In March, SiriusXM announced it was cutting 8% of its workforce to accomodate continued investment while ad sales slumped and subscriber growth was sluggish.

While SiriusXM reported a decline in self-pay subscribers and paid promotional subscribers, the total number of subscribers and the total revenue from SiriusXM held flat from a year ago at 34 million and $1.6 billion respectively. Average revenue per user was also flat at $15.69, despite getting a boost from certain full-price subscription rate hikes.

Advertising revenue for the company’s Pandora and off-platform business edged 3% higher to $418 million from a year ago, due to increases ad sales in programs and podcasts.

The number of monthly active users on Pandora fell to 46.5 million from 48.8 million a year ago. Subscriber revenue held flat at $132 million from a year ago.

Here’s a snapshot of the company’s quarterly earnings: