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Sirius XM (SIRI) Q1 Earnings Match Estimates, Revenues Miss
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Sirius XM Holdings (SIRI - Free Report) reported first-quarter 2023 earnings of 6 cents per share, which matched the Zacks Consensus Estimate but decreased 25% year over year.
Total revenues on a reported basis declined year over year to $2.14 billion. The figure missed the consensus mark by 1.06%.
Subscriber revenues (78.9% of total revenues) declined 1.3% from the year-ago quarter to $1.69 billion.
Meanwhile, advertisement revenues (17.5%) declined 2.1% year over year to $375 million. Equipment revenues (2.1% of total revenues) decreased 13.2% year over year to $46 million.
Other revenues (1.5% of total revenues) decreased 13.5% from the year-ago quarter to $32 million.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM segment revenues (78.5% of total revenues) were $1.68 billion, down 2.2% year over year. While the subscriber base increased 0.2%, revenues witnessed a decline due to a 1.5% drop in average revenue per user, which amounted to $15.29.
Self-pay subscribers increased 3% year over year to 32.04 million. Net subscribers decreased 281K in the reported quarter.
Total subscribers were 34.02 million at the end of first-quarter 2023, up 0.2% from the year-ago quarter.
Sirius XM Canada subscribers grew by 64K to 2.58 million. Subscriber revenues declined 1.2% year over year to $1.56 billion. Advertising revenues were $41 million, down 12.8% year over year.
Equipment revenues decreased 13.2% year over year to $46 million. Other revenues decreased 13.5% year over year to $32 million.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues (21.5% of total revenues) declined 1.1% year over year at $462 million owing to a 0.6% decrease in advertising revenues that totaled $334 million and subscriber revenues that declined 2.3% year over year to $128 million.
Self-pay subscribers of the Pandora Plus and Pandora Premium services increased by 7K during the first quarter of 2023 from the fourth quarter of 2022. Compared with the prior-year period, total subscribers decreased slightly by 2%, ending the first quarter at 6.2 million compared with 6.3 million in 2022.
Total ad-supported listener hours were 2.59 billion in the first quarter, down 3.4% year over year. Advertising revenue per thousand listener hours were $85.09 in the first quarter, down 5.2% year over year.
Operating Details
In the first quarter, total operating expenses increased 3.3% year over year to $1.73 billion.
Adjusted EBITDA decreased 9.4% year over year to $625 million.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and cash equivalents were $53 million compared with $57 million as of Dec 31, 2022.
The long-term debt, as of Mar 31, 2023, was $9.39 billion compared with $9.25 billion as of Dec 31, 2022.
For the first quarter, cash flow from operations was $350 million compared with $355 million in the year-ago quarter.
Free cash flow was $144 million for the first quarter of 2023, down from $258 million in the prior-year period.
2023 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.75 billion. Free cash flow is expected to be $1.1 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for SEAS’ first-quarter 2023 earnings is pegged at a loss of 18 cents per share, which is widened by 2 cents over the past 30 days.
The Zacks Consensus Estimate for AGS’ first-quarter 2023 earnings is pegged at a loss of 8 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for NRDY’s first-quarter 2023 earnings is pegged at a loss of 5 cents per share, unchanged over the past 30 days.
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Sirius XM (SIRI) Q1 Earnings Match Estimates, Revenues Miss
Sirius XM Holdings (SIRI - Free Report) reported first-quarter 2023 earnings of 6 cents per share, which matched the Zacks Consensus Estimate but decreased 25% year over year.
Total revenues on a reported basis declined year over year to $2.14 billion. The figure missed the consensus mark by 1.06%.
Subscriber revenues (78.9% of total revenues) declined 1.3% from the year-ago quarter to $1.69 billion.
Meanwhile, advertisement revenues (17.5%) declined 2.1% year over year to $375 million. Equipment revenues (2.1% of total revenues) decreased 13.2% year over year to $46 million.
Other revenues (1.5% of total revenues) decreased 13.5% from the year-ago quarter to $32 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 (78.5% of total revenues) were $1.68 billion, down 2.2% year over year. While the subscriber base increased 0.2%, revenues witnessed a decline due to a 1.5% drop in average revenue per user, which amounted to $15.29.
Self-pay subscribers increased 3% year over year to 32.04 million. Net subscribers decreased 281K in the reported quarter.
Total subscribers were 34.02 million at the end of first-quarter 2023, up 0.2% from the year-ago quarter.
Sirius XM Canada subscribers grew by 64K to 2.58 million. Subscriber revenues declined 1.2% year over year to $1.56 billion. Advertising revenues were $41 million, down 12.8% year over year.
Equipment revenues decreased 13.2% year over year to $46 million. Other revenues decreased 13.5% year over year to $32 million.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues (21.5% of total revenues) declined 1.1% year over year at $462 million owing to a 0.6% decrease in advertising revenues that totaled $334 million and subscriber revenues that declined 2.3% year over year to $128 million.
Self-pay subscribers of the Pandora Plus and Pandora Premium services increased by 7K during the first quarter of 2023 from the fourth quarter of 2022. Compared with the prior-year period, total subscribers decreased slightly by 2%, ending the first quarter at 6.2 million compared with 6.3 million in 2022.
Total ad-supported listener hours were 2.59 billion in the first quarter, down 3.4% year over year. Advertising revenue per thousand listener hours were $85.09 in the first quarter, down 5.2% year over year.
Operating Details
In the first quarter, total operating expenses increased 3.3% year over year to $1.73 billion.
Adjusted EBITDA decreased 9.4% year over year to $625 million.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and cash equivalents were $53 million compared with $57 million as of Dec 31, 2022.
The long-term debt, as of Mar 31, 2023, was $9.39 billion compared with $9.25 billion as of Dec 31, 2022.
For the first quarter, cash flow from operations was $350 million compared with $355 million in the year-ago quarter.
Free cash flow was $144 million for the first quarter of 2023, down from $258 million in the prior-year period.
2023 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.75 billion. Free cash flow is expected to be $1.1 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 SeaWorld Entertainment , PlayAGS (AGS - Free Report) and Nerdy (NRDY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. These companies are scheduled to report the quarterly results on May 5. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SEAS’ first-quarter 2023 earnings is pegged at a loss of 18 cents per share, which is widened by 2 cents over the past 30 days.
The Zacks Consensus Estimate for AGS’ first-quarter 2023 earnings is pegged at a loss of 8 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for NRDY’s first-quarter 2023 earnings is pegged at a loss of 5 cents per share, unchanged over the past 30 days.