Northern, WI 02/07/2013 (usmarketbuzz) – An expanding subscriber base helped Sirius XM Radio Inc. (NASDAQ:SIRI)’s fourth quarter profits grow over 200%, the company reported Tuesday. The satellite radio provider also hit record sales for the year 2012 this quarter.
Despite failing to surface beyond analyst’s estimates of $898.7 million gross sales recorded in the fourth quarter marked a 14% growth over the last year’s 4th quarter of $783.7 million and landed at $892.4 million. Net profit for the quarter was $156.2 million as against $71.3 million for Q4 2011. EPS rose 50% to $0.02 compared to last year’s Q4, analysts estimate was 2 cents a share.
The number of total paying subscribers swelled to over 23.9 million after a highest ever increment of 2 million in Q4, 2012. Self-pay net subscribersincreased36%YOY to 1.7 million making the self-pay user base total up to almost 19.6 million, the company revealed.
“Aside from attaining outstanding revenues adjusted EBITDA and free cash flow the company also paid first ever return to shareholders in the history of satellite radio through a special-cash dividend of $327 million”, CEO Jim Meyer candidly announced. Liberty Media Corporation (NASDAQ:LMCA), which holds a 50.2% stake in the company, is entitled to most of that dividend.
Annual revenuesfor 2012 were13% up from the last year, to a record high of $3.4 billion. 2011 subscription revenues of $2.60 billion increased to $2.96 billion in 2012. Despite a $3.0 billion tax benefit and $133 million loss from debt extinguishment net income rose to $3.5 billion as against $427 million while EPS climbed to $0.51 compared to $0.07 in 2011. Adjusted EBITDA in 2012 was $920 million up 26 percent from $731 million in 2011.
Amid rumorsof going bankrupt in 2008 and a $2 billion share buyback program the company has made an amazing retreat. After hitting rock bottom its stocks, that once plunged to as low as a nickel each have earned a stable slot back to the 2007 levels.
Liberty Media Corporation (NASDAQ:LMCA) is a component of the Nasdaq’s global select tier.
The shares of Sirius XM Radio Inc. (NASDAQ:SIRI) were down by 1.25% to close at $3.16 .
The shares of Liberty Media Corporation (NASDAQ:LMCAD) is at $110.55.