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SiriusXM added around 264,000 new self-pay subscribers in the second quarter of 2020, the company announced in its earnings results Thursday, bringing it to nearly 34.3 million total subscribers in the first full quarter to be affected by the coronavirus pandemic. Its revenue was revenue of $1.9 billion, down 5% compared to the prior year period. The company’s net income was $243 million in the second quarter 2020, compared to $263 million in the prior year period. Net income per diluted common share was $0.05 in the second quarter 2020, compared to $0.06 in the prior year period.

According to the announcement, adjusted EBITDA in the second quarter totaled $615 million, roughly unchanged from $618 million in the prior year period, resulting in an adjusted EBITDA margin of 32.8, up approximately 160 basis points from the 2019 period. The improvement in adjusted EBITDA margin was driven by a 7% decrease in total cash operating expenses, primarily in subscriber acquisition costs, revenue share and royalties, and sales and marketing, while revenue decreased 5%. Sirius XM shares have decreased 17% since the beginning of the year, while its stock has fallen 4% in the last 12 months, although it saw a 2% bump early Thursday after CEO Jim Meyer said negotiations with network star Howard Stern, whose contract is up at the end of the year, are going well.

“I don’t want to be overly optimistic, but I want Howard here,” he said on the earnings call. “This process isn’t any different to me that the last time, so we keep working and we will get there, I hope.”

In a prepared statement about the earnings, Meyer said: “Sirius XM’s business during this challenging period has been resilient, and with improving results and visibility into the remainder of the year, I’m pleased to resume offering subscriber and financial guidance.  Despite the incredible economic stresses brought about by the COVID-19 pandemic, our self-pay net subscriber additions grew by nearly 200,000 over the first quarter of the year, and we reported improved churn of just 1.6% per month with rising ARPU.  Although advertising revenue fell 34% in the quarter, substantial expense savings in SAC and other areas provided a complete offset, and we generated over half a billion dollars of free cash flow.  We are investing in our business, our people, and external opportunities to position ourselves for future growth.”