SiriusXM (NASDAQ:$SIRI) released its second quarter earnings report on Thursday, July 27. The report was quite positive, and the company’s stock increased following the news. As of 11:40 AM PT on July 27, SiriusXM’s stock has increased by 6.49%.
In the company’s second quarter, SiriusXM saw its earnings go up by 16% to reach $202 million. Overall revenue was $1.34 billion, a 9% increase year-over-year. Most importantly, SiriusXM saw 466,000 new self-pay subscribers during its second quarter. The addition took the total number of self-pay subscribers to almost 26.7 million. Overall subscribers reached 32 million. As well, SiriusXM announced its plans to make a $480 million investment in Pandora (NYSE:$P) during its second quarter.
“In the second quarter, SiriusXM continued its strong track record of execution, and demand for our premium content bundle pushed our listener base to an all-time high of more than 32 million paying subscribers,” SiriusXM’s CEO Jim Meyer said of the company’s second quarter earnings.
Meyer also addressed the company’s plan to invest in Pandora, which is currently in the process of being completed. “We really want to get under the hood of how the free [radio] business works,” Meyer explained. However, the CEO did not specify how the investment will benefit SiriusXM in terms of future earnings.
Additionally, SiriusXM is working on launching a video streaming service. Meyer told investors that the company wants to use video as a way to extend its core audio content. The radio company plans to begin its video service with Howard Stern’s satellite radio show to drive the initial rollout.
For its 2017 guidance, SiriusXM is expecting a revenue of $5.37 billion – a rise from its earlier expectation of $5.30 billion. It is also expecting about 1.4 million new self-pay net subscribers in total for the current fiscal year.
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