Sirius XM Radio Inc (NASDAQ:SIRI) said in a conference call earlier today that it expects to either equal or exceed 2012 full year revenue estimate of $3.4 billion. The satellite radio services provider reported revenue of $$867 million, the highest ever to be reported by a satellite radio company, in a single quarter.
The company also improved on its quarterly year over year growth rate, from 13 percent reported in quarter two, to 14 percent in quarter three, depicting an incremental growth rate between the subsequent quarters. Sirius XM radio’s Q1 grew by 11%.Sirius XM Radio Inc (NASDAQ:SIRI)’s average revenue per user (ARPU) was also up 4% year over year; the company also expressed that it has adopted various measures to boost it, such as increasing sales of the premium package and all access plan, and promoting its Internet streaming add-on.
The departing CEO, Mel Karmazin, expressed great belief in the company’s potential, also highlighting that the company will focus on increasing its subscriber base, which increased to 23.5 million in Q3. Karmazin said, “Sirius XM Radio Inc (NASDAQ:SIRI) had a great third quarter–we ended the quarter with a record number of subscribers”.
“We had record net adds for the third quarter since the merger, record adjusted EBITDA, record revenue, highest quarterly ARPU, best adjusted EBITDA margin for a third quarter, also the lowest quarter programming expenditures since 2005, while at the same time offering more and better content than at any time in our history,” Karmazin added.
The company has raised its subscriber guidance for the third consecutive time this year, following yet another great performance. Karmazin pointed to the consistent growth in subscriber base as the basis for the company’s growth. Net subscribers grew by 446,000, or 34% rise from the previous quarter.
The company also hopes to end the year with over 49 million satellite enabled vehicles in operation, up from last year’s 11 million. Next year, the company expects to have over 59 million satellite enabled vehicles in operation.
The company was recently acquired by John Malone’s Liberty Media Corp (Capital) (NASDAQ:LMCA) and was trading at $2.90 per share at 2.45 p.m EST, up $0.10 per share, or a 3.55 percent increase from yesterday’s close.