September 14, 2011: Sirius XM offers financial guidance for 2012, predicting revenue growth of 10 percent, to approximately $3.3 billion for the year. The satcaster is also looking for adjusted EBITDA growth of 20 percent, to about $860 million, and 75 percent growth in free cash flow, to approximately $700 million.
"Our new guidance for 2012 demonstrates our expectation of robust growth next year," Sirius XM CEO Mel Karmazin said. "Sirius XM's outstanding financial performance in the midst of considerable economic uncertainty will continue in 2012 as we grow our subscriber base and free cash flow and anticipate that our revenue and adjusted EBITDA growth will accelerate."
Sirius XM also affirmed its 2011 guidance, looking for about 1.6 million net new subscribers, revenue of approximately $3 billion, adjusted EBITDA of about $715 million, and free cash flow "approaching $400 million."
Price Hike On The Way
Sirius XM's prices will be going up next year: Karmazin announced that on January 1, the base price for Sirius and XM Select will rise to $14.49 a month from $12.95, and the company will also "adjust prices on man of our other programming packages."
Karmazin said, "This is the first price increase on our basic service packages since the addition of the NFL, NASCAR, Howard Stern, Martha Stewart, and many college sports to our programming lineup. Through continued investments in technology, the best and most diverse programming in radio is available to our subscribers in cars, homes, offices, business establishments, on the Internet and smartphones. We will expand our programming and technology further with the launch of Sirius XM 2.0 in the coming months."
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