(Reuters) – Satellite-radio company SiriusXM beat analysts’ expectations for quarterly revenue on Tuesday, helped by demand for its advertising services and lower-priced offerings.
SiriusXM has stepped up efforts toward bolstering its content line-up with exclusive talk-shows such as “This Life of Mine” with James Corden, which has gained popularity and helped the company to increase its media presence.
The company reported first-quarter revenue of $2.16 billion, above analysts’ average estimate of $2.13 billion, according to LSEG data.
SiriusXM had rolled out a new streaming app in December, with a lower, all-access plan priced at $9.99 a month, looking to retain subscribers and attract new users as it faces sustained competition from larger rivals Spotify and Alphabet’s YouTube.
The company reported a 7% rise in advertising revenue to $402 million in the first quarter, helped by continued investments in podcasts.
“We are seeing increasing success by taking a network-first approach, allowing for greater flexibility and audience targeting for our advertisers … Buying across the SiriusXM Podcast Network allows marketers to target their key audiences at scale, and to reach dedicated fandom,” CEO Jennifer Witz said.
SiriusXM, which offers its audio products to automakers, has also received a boost from rising U.S. auto sales in the first quarter on sustained appetite for crossover SUVs, pickup trucks and better supply of new vehicles.
But, according to the company, positive auto sales have led to an increased monthly churn rate — the rate of customers who stopped using the company’s services — among self-pay users at 1.7% versus 1.6% in the first quarter of 2023.
Self-pay subscribers decreased by 359,000 in the first quarter, compared with a decline of 347,000 a year ago.
The company’s net income for the quarter stood at $265 million, versus $233 million a year ago.
(Reporting by Harshita Mary Varghese; Editing by Shilpi Majumdar)
