Sirius XM Holdings (SIRI Quick QuoteSIRI - Free Report) reported fourth-quarter 2022 earnings of 9 cents per share, which beat the Zacks Consensus Estimate by 12.5% and increased 12.5% year over year.

Total revenues on a reported basis remained flat year over year to $2.28 billion. The figure missed the consensus mark by 0.8%.

Subscriber revenues (75.6% of total revenues) rose 1.8% from the year-ago quarter to $1.72 billion.

Meanwhile, advertisement revenues (21%) declined 3% year over year to $480 million. Equipment revenues (1.8% of total revenues) decreased 22.6% year over year to $41 million.

Other revenues (1.6% of total revenues) decreased 5.3% from the year-ago quarter to $36 million.

Sirius XM Standalone Details

Sirius XM segment revenues were $1.72 billion, up 0.9% year over year. While the subscriber base increased 0.8%, revenues witnessed growth driven by a 2% rise in Average revenue per user, which amounted to $15.64.

Self-pay subscribers increased 3% year over year to 32.38 million. Net self-pay subscribers increased 134K in the reported quarter.

Total subscribers were 34.3 million at the end of fourth-quarter 2022, up 0.8% from the year-ago quarter.

Sirius XM Canada subscribers grew by 50K to 2.56 million. Subscriber revenues rose 2.1% year over year to $1.59 billion. Advertising revenues were $50 million, down 5.7% year over year.

Equipment revenues decreased 22.6% year over year to $41 million. Other revenues decreased 5.3% year over year to $36 million.

Pandora & OFF Platform Details

Pandora and OFF platform’s revenues declined 2.6% year over year at $560 million owing to a 2.7% decrease in advertising revenues that totaled $430 million and subscriber revenues that declined 2.3% year over year to $130 million.

Pandora finished 2022 with 47.6 million Monthly Active Users, down 9% from 52.3 million in the prior year period. Total ad-supported listener hours were 10.9 billion at the end of 2022, down 6% from 11.5 billion in 2021. Average monthly listening hours per ad-supported user climbed 4% to 20.6 in 2022 compared with 19.9 in 2021.

Operating Details

In the fourth quarter, total operating expenses decreased 4.7% year over year to $1.72 billion.

Adjusted EBITDA increased 10.4% year over year to $742 million.

Balance Sheet & Cash Flow

As of Dec 31, 2022, cash and cash equivalents were $57 million compared with $39 million as of Sep 30, 2022.

The long-term debt, as of Dec 31, 2022, was $9.25 billion compared with $9.78 billion as of Sep 30, 2022.

For the year ended 2022, cash flow from operations was $1.97 billion compared with $1.99 billion in the prior year.

2023 Guidance

Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.7 billion. Free cash flow is expected to be $1.05 billion.

Zacks Rank & Stocks to Consider

Currently, Sirius XM carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Consumer Discretionary sector are Six Flags Entertainment (SIX Quick QuoteSIX - Free Report) , Liberty Global (LBTYA Quick QuoteLBTYA - Free Report) and Warner Bros. Discovery (WBD Quick QuoteWBD - 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.

Six Flags Entertainment, Liberty Global and Warner Bros. Discovery are scheduled to report their quarterly results on Feb 22, Feb 23 and Mar 2, respectively.

The Zacks Consensus Estimate for SIX’s fourth-quarter 2022 earnings is pegged at 23 cents per share, unchanged over the past 30 days.

The Zacks Consensus Estimate for LBTYA’s fourth-quarter 2022 earnings is pegged at 49 cents per share, unchanged over the past 30 days.

The Zacks Consensus Estimate for WBD’s fourth-quarter 2022 earnings is pegged at 8 cents per share, down 42.9% over the past 30 days.