Fueled by an increase in demand that led to higher subscriber additions, Sirius XM Radio (NASDAQ:SIRI) stirred up a stronger-than-expected second-quarter profit on Tuesday and raised its fiscal view for customer growth.
The company, which saw significant subscriber growth during the quarter of 452,147, said it anticipates another 2 million customers will join this year, raising its total fiscal view to 1.6 million subscriber additions from its earlier forecast of 1.4 million.
The New York-based provider of satellite radio services in the U.S. and Canada posted quarterly net income of $173.32 million, or 3 cents a share, compared with $15.27 million, or break-even earnings per share, in the same quarter last year.
Analysts polled by Thomson Reuters were expecting on average slightly weaker earnings of a penny a share.
Revenue for the three-month period was $744 million, up 6% from $700 million, in the same quarter last year, narrowly missing the Streets view of $751.2 million.
Our results in the second quarter were strong, and we are proud of our record levels of subscribers, revenue, and adjusted EBITDA and growth in free cash flow, said SiriusXM CEO Mel Karmazin.