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Sirius XM (SIRI) Q2 Earnings Miss Estimates, Revenues Rise Y/Y
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Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2022 earnings of 7 cents per share, which missed the Zacks Consensus Estimate by 12.5% and declined 30% year over year.
Total revenues on a reported basis increased 4.4% year over year to $2.25 billion. The figure beat the consensus mark by 0.12%.
Subscriber revenues (76.3% of total revenues) rose 4.8% from the year-ago quarter to $1.71 billion.
Meanwhile, advertisement revenues (20.1%) climbed 5.4% year over year to $452 million. Equipment revenues (2% of total revenues) declined 11.8% year over year to $45 million.
Other revenues (1.6% of total revenues) decreased 2.6% from the year-ago quarter to $37 million.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM segment revenues were $1.71 billion, up 4.6% year over year. While the subscriber base declined 1.3%, revenues witnessed growth due to a 7.2% rise in ARPU, which amounted to $15.62.
Self-pay subscribers increased 3% year over year to 32.03 million. Net self-pay subscribers increased 77K in the reported quarter.
Total subscribers were 34.03 million at the end of second-quarter 2022, down from 34.47 million reported in the year-ago quarter.
Sirius XM Canada subscribers fell by 4K to 2.57 million. Subscriber revenues rose 5.3% year over year to $1.58 billion. Advertising revenues were $49 million, up 6.5% year over year.
However, Equipment revenues declined 11.8% year over year to $45 million. Other revenues decreased 2.6% year over year to $37 million.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues increased 3.5% year over year to $534 million, owing to 5.2% growth in advertising revenues that totaled $403 million. Subscriber revenues inched down 1.5% year over year to $131 million.
The company witnessed a decrease in second-quarter ad monetization to $99.75 per thousand hours, down 0.6% year over year.
Monthly Active Users (MAUs) at Pandora were 50.5 million in the second quarter of 2022, down from 55.1 million in the prior year period. Total ad-supported listener hours were 2.84 billion in the second quarter of 2022, down 6.3% year over year.
Pandora exited the second quarter with 6.319 million self-pay subscribers, down 3.9% year over year.
Operating Details
In the second quarter, total operating expenses increased 17.1% year over year to $1.75 billion.
Revenue share and royalty costs were up 7.4% year over year to $711 million. Programming & content costs totaled $144 million, up 12.5%.
Customer service & billing costs decreased 1.6% year over year to $124 million. Transmission costs advanced 6% year over year to $53 million.
Subscriber acquisition costs rose 2.2% year over year to $91 million. General and administrative costs decreased 0.9% to $113 million.
Engineering, design and development expenses increased 6.8% from the year-ago quarter to $63 million. Sales and marketing expenses increased 19.8% to $272 million.
Adjusted EBITDA declined 3% year over year to $679 million.
Balance Sheet & Cash Flow
As of Jun 30, 2022, cash and cash equivalents were $126 million compared with $76 million as of Mar 31, 2022.
The long-term debt, as of Jun 30, 2022, was $9.86 billion compared with $9.83 billion as of Mar 31, 2022.
In the second quarter of 2022, cash flow from operations was $888 million compared with $928 million in the year-ago quarter.
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 & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
SIRI shares have returned 3.9% in the year-to-date period against the Zacks Consumer Discretionary sector’s decline of 30.7%.
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Sirius XM (SIRI) Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2022 earnings of 7 cents per share, which missed the Zacks Consensus Estimate by 12.5% and declined 30% year over year.
Total revenues on a reported basis increased 4.4% year over year to $2.25 billion. The figure beat the consensus mark by 0.12%.
Subscriber revenues (76.3% of total revenues) rose 4.8% from the year-ago quarter to $1.71 billion.
Meanwhile, advertisement revenues (20.1%) climbed 5.4% year over year to $452 million. Equipment revenues (2% of total revenues) declined 11.8% year over year to $45 million.
Other revenues (1.6% of total revenues) decreased 2.6% from the year-ago quarter to $37 million.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Sirius XM Standalone Details
Sirius XM segment revenues were $1.71 billion, up 4.6% year over year. While the subscriber base declined 1.3%, revenues witnessed growth due to a 7.2% rise in ARPU, which amounted to $15.62.
Self-pay subscribers increased 3% year over year to 32.03 million. Net self-pay subscribers increased 77K in the reported quarter.
Total subscribers were 34.03 million at the end of second-quarter 2022, down from 34.47 million reported in the year-ago quarter.
Sirius XM Canada subscribers fell by 4K to 2.57 million. Subscriber revenues rose 5.3% year over year to $1.58 billion. Advertising revenues were $49 million, up 6.5% year over year.
However, Equipment revenues declined 11.8% year over year to $45 million. Other revenues decreased 2.6% year over year to $37 million.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues increased 3.5% year over year to $534 million, owing to 5.2% growth in advertising revenues that totaled $403 million. Subscriber revenues inched down 1.5% year over year to $131 million.
The company witnessed a decrease in second-quarter ad monetization to $99.75 per thousand hours, down 0.6% year over year.
Monthly Active Users (MAUs) at Pandora were 50.5 million in the second quarter of 2022, down from 55.1 million in the prior year period. Total ad-supported listener hours were 2.84 billion in the second quarter of 2022, down 6.3% year over year.
Pandora exited the second quarter with 6.319 million self-pay subscribers, down 3.9% year over year.
Operating Details
In the second quarter, total operating expenses increased 17.1% year over year to $1.75 billion.
Revenue share and royalty costs were up 7.4% year over year to $711 million. Programming & content costs totaled $144 million, up 12.5%.
Customer service & billing costs decreased 1.6% year over year to $124 million. Transmission costs advanced 6% year over year to $53 million.
Subscriber acquisition costs rose 2.2% year over year to $91 million. General and administrative costs decreased 0.9% to $113 million.
Engineering, design and development expenses increased 6.8% from the year-ago quarter to $63 million. Sales and marketing expenses increased 19.8% to $272 million.
Adjusted EBITDA declined 3% year over year to $679 million.
Balance Sheet & Cash Flow
As of Jun 30, 2022, cash and cash equivalents were $126 million compared with $76 million as of Mar 31, 2022.
The long-term debt, as of Jun 30, 2022, was $9.86 billion compared with $9.83 billion as of Mar 31, 2022.
In the second quarter of 2022, cash flow from operations was $888 million compared with $928 million in the year-ago quarter.
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 & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
SIRI shares have returned 3.9% in the year-to-date period against the Zacks Consumer Discretionary sector’s decline of 30.7%.
Some better-ranked stocks in the Consumer Discretionary sector include Sinclair Broadcast Group (SBGI - Free Report) , Nexstar Media Group (NXST - Free Report) and Gray Television (GTN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sinclair Broadcast, Nexstar Media Group and Gray Television are scheduled to report their quarterly results on Aug 3, Aug 4, and Aug 5, respectively.
The Zacks Consensus Estimate for Sinclair Broadcast Group’s second-quarter 2022 loss is pegged at $3.35 per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for Nexstar Media Group’s second-quarter 2022 earnings is pegged at $5.46 per share, unchanged over the past 30 days.
The consensus mark for Gray Television’s second-quarter 2022 earnings is pegged at 97 cents per share, unchanged in the past 30 days.