Sirius XM Radio Inc said on Thursday it added 513,000 net subscribers to its satellite service in the third quarter and set its 2014 revenue forecast at $4 billion, below Wall Street estimates.
Analysts, on average, estimated that revenue will come in at $4.17 billion next year.
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Sirius also missed revenue and net income estimates in the third quarter, sending shares down 3.4 percent to $3.92 per share in premarket trading. Its shares are up more than 40 percent over the last 12 months.
The company said it plans to add a net 1.6 million subscribers this year. It ended the quarter with 25.6 million subscribers.
Third-quarter net income was $62.89 million, or 1 cent per share, compared with $74.5 million, or 1 cent per share, a year ago. The company missed analysts' estimates by a penny.
Sirius XM said it generated $245 million in free cash flow, up from $195 million a year ago
Revenue per subscriber was $12.29, up from $12.14 a year ago, but below what analysts at Macquarie expected.
Quarterly revenue increased 11 percent to $961.5 million from a year ago, and missed estimates by less than $10 million.
Sirius has satellite radios in 70 percent of new vehicles and generates the majority of its revenue through subscriptions.
The New York-based company, controlled by John Malone's Liberty Media Corp, has hundreds of channels that play few commercials and feature exclusive content such as Howard Stern's radio show and a music channel dedicated to Bruce Springsteen.
It faces increased competition from Internet streaming services such as Pandora Media Inc that are trying to crack the car market, where Sirius XM has a strong foothold.