Sirius XM Q4 Profit Falls On Charges, Revenue Up 12%

(RTTNews) - Satellite radio services provider Sirius XM Holdings Inc. (SIRI) Tuesday reported a fall in fourth-quarter profit, reflecting loss on extinguishment of debt, and a loss on change in value of derivatives. Revenues, however, climbed 12 percent and came above analysts' expectations. The company also reiterated its revenue outlook for 2014.

For the fourth quarter, the company posted net income of $65.20 million or $0.01 per share, lower than $156.24 million or $0.02 per share in the same quarter last year.

On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

During the quarter, the company recorded loss on extinguishment of debt and credit facilities, net $66.23 million, and loss on change in value of derivatives totaling $20.39 million.

Total revenues for the quarter grew 12 percent to $1.00 billion from $892.42 million in the same quarter last year. Analysts estimated revenues of $981.92 million for the quarter.

Subscriber revenue climbed to $852.55 million from $774.47 million a year earlier. Advertising revenue was $25.40 million, up from $22.44 million in 2012. Equipment revenue also increased to $25.99 million from $22.27 million in the preceding year.

According to the company, self-pay subscriber net additions were 411,484 in the fourth quarter, resulting in an all-time high self-pay subscriber base of 21.1 million at year end, an increase of 8 percent from a year ago.

Subscribers at the end of December 2013, totaled 25,559,310, up from 23,900,336 at the end of 2012. Subscriber acquisition costs per gross subscriber addition declined to $44 from $54 last year.

The company also reiterated its 2014 guidance for revenue of over $4 billion, and net subscriber additions of about 1.25 million. Analysts are looking for revenues of $4.13 billion for the year.

Earlier last month, billionaire John Malone-controlled Liberty Media Corp. (LMCA, LMCB) said that it has made a proposal to Sirius XM Holdings by which Sirius public shareholders would become shareholders of Liberty in a tax-free deal in which each share of Sirius common stock would be converted into 0.0760 of a new share of Liberty Series C common stock.

Liberty Media became Sirius' largest shareholder in 2009 after it gave the company a $530 million loan to help it stave off bankruptcy. In January 2013, Liberty Media bought further 50 million shares of common stock in Sirius to raise its holdings in the satellite radio company to just over a majority stake.

Sirius XM shares closed Monday's regular trading at $3.55 on the Nasdaq. In the pre-market activity on Tuesday, the shares are down 0.28 percent.