SiriusXM Reports Higher Revenue and Subscribers, But Expects ‘Softer’ 2023
The satellite radio company reported revenues up 4% as its net self-pay subscriber base grew by nearly 350,000.
SiriusXM reported its full-year 2022 revenue grew by 4% to $9 billion on Thursday, as increased numbers of streaming subscribers helped the company hit its financial targets for the year.
While key metrics like earnings before interest, taxes, depreciation and amortization (EBITDA) were up 2% at $2.8 billion, executives struck a cautious tone on a call with investors, saying they expect softness in the year ahead.
“We broadly anticipate a softer first half (of 2023) in terms of revenue, EBITDA and subscriber growth as compared to the back half of the year,” SiriusXM chief executive Jennifer Witz said on the call. “We are not issuing subscriber guidance at this time, although we anticipate we’ll see modestly negative self-pay net adds for the year as economic and demand uncertainty persists, auto sales remain soft, and we moderate marketing spend for our streaming service early in the year ahead of planned product improvements late in 2023.”
SiriusXM reported a net income of $365 million in the fourth quarter ending Dec. 31, up from $318 million the year prior. EBITDA for the quarter rose 10% to $742 million. The company reported 348,000 net new self-pay subscribers for the year.
The company said late last year it would embark on a broad effort to cut costs, as it invests in the back-end technology and user-friendliness of its SiriusXM app. Updating the app’s infrastructure so that the company can bring new products to the app quickly is a key part of the company’s growth strategy.
In a memo to staff last year, Witz said the company will be looking at all ways to trim costs, including possible job cuts, as it weighs how to handle macroeconomic challenges like declining advertising budgets and auto manufacturer delays.