Sirius XM Declares Dividend, Boosts Share Buybacks by $2 Billion
October 27 2016 - 8:38AM
Dow Jones News
By Joshua Jamerson
Sirius XM Holdings Inc. initiated a quarterly dividend of a
penny a share and boosted its share-buyback program by $2 billion
on Thursday, as the satellite radio company said profit rose 17% in
the latest period.
Shares rose 2.1% to $4.33 premarket.
In its third quarter, Sirius XM said it added 345,000 net new
subscribers, ending the quarter with 31 million total subscribers.
Its number of subscribers who don't get Sirius's service as part of
a promotion, described as self-paying subscribers, rose 385,000 to
25.5 million.
The company's self-pay churn rate, or the rate at which its
subscribers left the service, was unchanged from a year ago at
1.9%. Its average revenue per user rose 3% to $13.04, which the
company said was its highest ever.
Sirius XM's profit rose to $193.9 million from $166.5 million a
year ago. On a per-share basis, earnings rose to 4 cents from 3
cents a share. Revenue grew 9.2% to $1.28 billion.
Analysts polled by Thomson Reuters had forecast 4 cents in
per-share earnings on $1.23 billion in revenue.
The additional $2 billion in share repurchases will bring
Sirius's total buyback authorization to $10 billion.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 27, 2016 08:23 ET (12:23 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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