Sirius XM Holdings (SIRI - Free Report) delivered fourth-quarter 2021 earnings of 8 cents per share, beating the Zacks Consensus Estimate by 14.3% and increasing the same percentage year over year.
Total revenues on a reported basis increased 4.2% year over year to $2.28 billion. The figure beat the consensus mark by 0.71%
Subscriber revenues (74.3% of total revenues) rose 5% from the year-ago quarter to $1.70 billion.
Meanwhile, advertisement revenues (21.7%) increased 4.4% year over year to $495 million. Equipment revenues (2.3% of total revenues) declined 11.7% year over year to $53 million.
Other revenues (1.7% of total revenues) decreased 5% from the year-ago quarter to $38 million.
Sirius XM Standalone Details
Sirius XM segment revenues were $1.71 billion, up 4.5% year over year. While the subscriber base declined 2%, the company witnessed growth of 7% in ARPU that amounted to $15.34.
Self-pay subscribers increased 3.7% year over year to 32.04 million. Net self-pay subscribers declined 231K in the reported quarter.
Total subscribers were 34.03 million at the end of fourth-quarter 2021, less than 34.65 million at the end of fourth-quarter 2020.
Sirius XM traffic users stayed at 8.568 million. However, Canada subscribers fell 4% to 2.517 million.
Additionally, the average self-pay monthly churn rate was 1.7% in the fourth quarter, up 10 basis points (bps) year over year.
Subscriber revenues rose 5.3% year over year to $1.56 billion. Moreover, Equipment revenues fell 11.7% year over year to $53 million.
However, advertising revenues were $53 million, up 8.2% year over year. Other revenues declined 5% year over year to $38 million.
Pandora Details
Pandora’s revenues increased 3.6% year over year to $575 million, owing to 4% growth in advertising revenues, which totaled $442 million. Subscriber revenues climbed 2.3% year over year to $133 million.
The growth in ad revenues was due to an increase in fourth-quarter monetization to $117.36 per thousand hours, up 4.1% year over year.
However, ARPU increased 0.4% year over year to $6.70.
Monthly active users were 52.28 million at the end of the reported quarter, down from 58.88 million in the year-ago quarter. Ad-supported listener hours declined 6.4% year over year to 2.77 billion.
Pandora exited the fourth quarter with 6.393 million self-pay subscribers, up 0.8% year over year.
Operating Details
In the fourth quarter, total operating expenses fell 32.9% year over year to $1.81 billion.
Revenue share and royalty costs were up 5.4% year over year to $698 million. Programming & content costs were $152 million, up 16.9%. Cost of equipment declined 16.7% year over year to $5 million.
Customer service & billing costs increased 6.6% year over year, at $130 million. Transmission costs increased 33.3% year over year to $64 million.
Subscriber acquisition costs declined 23.8% year over year to $80 million. General and administrative costs declined 11% to $137 million.
Engineering, design and development expenses increased 1.5% from the year-ago quarter to $68 million. Sales and marketing expenses increased 12.6% to $330 million.
Adjusted EBITDA inched up 1.8% year over year to $672 million.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $191 million compared with $164 million as of Sep 30, 2021.
The long-term debt, as of Dec 31, 2021, was $8.83 billion compared with $8.5 billion as of Dec 30, 2020.
At the end of the fourth quarter, Sirius XM’s net debt to trailing 12-month adjusted EBITDA ratio was 3.5 times.
2022 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.8 billion.
The company anticipates adding almost 500K Sirius XM self-pay net subscribers in 2022.
Free cash flow is expected to be $1.55 billion.
Zacks Rank & Other Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #4 (Sell)
SIRI shares are up 9.4% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 17.9% and the Consumer Discretionary sector’s fall of 18.6%.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Cedar Fair (FUN - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Gildan Activewear (GIL - Free Report) and Fox (FOXA - Free Report) , each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cedar Fun is set to announce fourth-quarter 2021 results on Feb 16.
FUN is up 32.8% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 1.5% and the Consumer Discretionary sector’s fall of 18.6%.
Gildan Activewear is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 56.9% in the past year against the Zacks Textile – Apparel industry’s decline of 1% and the Consumer Discretionary sector’s fall of 18.6.
Fox is set to announce second-quarter fiscal 2022 results on Feb 9.
FOXA is up 26.9% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 17.9% and the Consumer Discretionary sector’s fall of 18.6% in the past year.
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Sirius XM Holdings (SIRI - Free Report) delivered fourth-quarter 2021 earnings of 8 cents per share, beating the Zacks Consensus Estimate by 14.3% and increasing the same percentage year over year.
Total revenues on a reported basis increased 4.2% year over year to $2.28 billion. The figure beat the consensus mark by 0.71%
Subscriber revenues (74.3% of total revenues) rose 5% from the year-ago quarter to $1.70 billion.
Meanwhile, advertisement revenues (21.7%) increased 4.4% year over year to $495 million. Equipment revenues (2.3% of total revenues) declined 11.7% year over year to $53 million.
Other revenues (1.7% of total revenues) decreased 5% from the year-ago quarter to $38 million.
Sirius XM Standalone Details
Sirius XM segment revenues were $1.71 billion, up 4.5% year over year. While the subscriber base declined 2%, the company witnessed growth of 7% in ARPU that amounted to $15.34.
Self-pay subscribers increased 3.7% year over year to 32.04 million. Net self-pay subscribers declined 231K in the reported quarter.
Total subscribers were 34.03 million at the end of fourth-quarter 2021, less than 34.65 million at the end of fourth-quarter 2020.
Sirius XM traffic users stayed at 8.568 million. However, Canada subscribers fell 4% to 2.517 million.
Additionally, the average self-pay monthly churn rate was 1.7% in the fourth quarter, up 10 basis points (bps) year over year.
Subscriber revenues rose 5.3% year over year to $1.56 billion. Moreover, Equipment revenues fell 11.7% year over year to $53 million.
However, advertising revenues were $53 million, up 8.2% year over year. Other revenues declined 5% year over year to $38 million.
Pandora Details
Pandora’s revenues increased 3.6% year over year to $575 million, owing to 4% growth in advertising revenues, which totaled $442 million. Subscriber revenues climbed 2.3% year over year to $133 million.
The growth in ad revenues was due to an increase in fourth-quarter monetization to $117.36 per thousand hours, up 4.1% year over year.
However, ARPU increased 0.4% year over year to $6.70.
Monthly active users were 52.28 million at the end of the reported quarter, down from 58.88 million in the year-ago quarter. Ad-supported listener hours declined 6.4% year over year to 2.77 billion.
Pandora exited the fourth quarter with 6.393 million self-pay subscribers, up 0.8% year over year.
Operating Details
In the fourth quarter, total operating expenses fell 32.9% year over year to $1.81 billion.
Revenue share and royalty costs were up 5.4% year over year to $698 million. Programming & content costs were $152 million, up 16.9%. Cost of equipment declined 16.7% year over year to $5 million.
Customer service & billing costs increased 6.6% year over year, at $130 million. Transmission costs increased 33.3% year over year to $64 million.
Subscriber acquisition costs declined 23.8% year over year to $80 million. General and administrative costs declined 11% to $137 million.
Engineering, design and development expenses increased 1.5% from the year-ago quarter to $68 million. Sales and marketing expenses increased 12.6% to $330 million.
Adjusted EBITDA inched up 1.8% year over year to $672 million.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $191 million compared with $164 million as of Sep 30, 2021.
The long-term debt, as of Dec 31, 2021, was $8.83 billion compared with $8.5 billion as of Dec 30, 2020.
At the end of the fourth quarter, Sirius XM’s net debt to trailing 12-month adjusted EBITDA ratio was 3.5 times.
2022 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.8 billion.
The company anticipates adding almost 500K Sirius XM self-pay net subscribers in 2022.
Free cash flow is expected to be $1.55 billion.
Zacks Rank & Other Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #4 (Sell)
SIRI shares are up 9.4% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 17.9% and the Consumer Discretionary sector’s fall of 18.6%.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Cedar Fair (FUN - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Gildan Activewear (GIL - Free Report) and Fox (FOXA - Free Report) , each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cedar Fun is set to announce fourth-quarter 2021 results on Feb 16.
FUN is up 32.8% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 1.5% and the Consumer Discretionary sector’s fall of 18.6%.
Gildan Activewear is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 56.9% in the past year against the Zacks Textile – Apparel industry’s decline of 1% and the Consumer Discretionary sector’s fall of 18.6.
Fox is set to announce second-quarter fiscal 2022 results on Feb 9.
FOXA is up 26.9% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 17.9% and the Consumer Discretionary sector’s fall of 18.6% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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