NEW YORK - SiriusXM Holdings Inc. (NASDAQ: SIRI) reported a 3% decline in revenue to $2.18 billion for the second quarter of 2024, aligning with analysts' EPS expectations but falling slightly short of the revenue consensus.
The satellite radio company's earnings per share (EPS) held steady at $0.08, consistent with the same quarter last year and in line with analyst estimates.
Despite the revenue decline from the second quarter of 2023, net income saw a marginal increase to $316 million compared to $310 million in the prior year's second quarter. The company's adjusted EBITDA for the quarter was $702 million, showing no change YoY but an 8% improvement from the first quarter of 2024. This stability is attributed to a mix of lower subscriber revenue and higher sales and marketing costs, balanced by reduced service costs and general expenses.
The stock responded positively to the news, with shares rising 2%. The company's CEO, Jennifer Witz, expressed pride in the financial performance and reiterated the company's commitment to innovation and growth, particularly as SiriusXM nears the completion of its transaction with Liberty Media (NASDAQ:FWONA).
CFO Tom Barry highlighted the company's focus on operational efficiency and financial execution, which have been bolstered by strategic investments in technology.
For the full year 2024, SiriusXM anticipates revenue to reach $8.75 billion, which is slightly below the analyst consensus of $8.78 billion. The midpoint of this guidance suggests a cautious outlook, as it falls below the market's expectations.
In the second quarter, SiriusXM continued to return value to stockholders, delivering $103 million through dividends and reporting a net debt to adjusted EBITDA ratio of 3.2 times. The company remains dedicated to maintaining a leverage target of mid-to-low three times adjusted EBITDA.
The closing of the transaction with Liberty Media is expected after the market closes on Monday, September 9th, as the company continues to target long-term value for its stockholders.
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