10/24/13
SiriusXM reported third-quarter record results of $962 million, up 11 percent from Q3 of 2012. The company also announced it will be raising its price by six dollars per year for basic packages starting in January. This is the second price increase since a government ban was lifted following the merger of Sirius and XM in 2008. CEO Jim Meyer said, ?While changing prices is a hard decision, especially in the competitive audio entertainment market, we are assured that our subscribers see substantial value in our service and that this modest change will not considerably impact retention next year.? In 2011 SiriusXM increased the cost of its basic package by 1.50 dollars.
Meyer said the company "had a great quarter," adding more than half a million subscribers. We also saw double-digit growth in revenue for the seventh consecutive quarter, a new quarterly record for adjusted EBITDA and adjusted EBITDA margin, and significant growth in free cash flow."
Adjusted EBITDA for Q3 was up 21 percent, to $296 million, with adjusted EBITDA margin at nearly 31 percent. Free cash flow was $245 million, up 26 percent from $195 million in Q3 of 2012.
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