Can Sirius XM Holdings Inc. (NASDAQ:SIRI) Go The Extra Mile?


In the last trading session, the shares price of Sirius XM Holdings Inc. (NASDAQ:SIRI) declined more than 1% to close the week at $5.48. The decline came at a share volume of around 20.80 million compared to average share volume of 16.62 million.

In the Q2 2017, Sirius recorded net addition of 466,000 new self-pay subscribers to close quarter with around 26.7 million self-pay subscribers. During the reported period, the total net additions came at 445,000, after considering the drop of nearly 20,000 paid promotional subscribers. The firm closed the quarter with nearly 32 million total subscribers.

The buzz

During the second quarter of 2017, total revenue jumped 9% to a record $1.3 billion. The jump was led by a 3% increase in ARPU and 5% increase in subscribers. Adjusted EBITDA made a record $522 million, a jump of 12% over the Q2 2016. Sirius reported that adjusted EBITDA margin stood at 38.7% in the Q2 2017, a 90 basis point jump from 37.8% in the Q2 2016.

Free cash flow for Q2 2017 came at $417 million, a jump of 6% over the second quarter of 2016. Operating cash flow came jumped 12% to come at $483 million in Q2 2017. David Frear, the Chief Financial Officer of Sirius, reported that in Q2 2017, the deployed capital of nearly $1.25 billion in strategic investments and stockholder returns.

They had spent $477 million to repurchase as many as 94 million shares of company’s common stock. The company also returned cash of $47 million in the form of dividends in the second quarter, bringing total funds returned to shareholders to $524 million in the reported period. During the second quarter, Sirius invested $280 million to close the acquisition of Automatic Labs and stage one of its Pandora investment. In addition, the company invested $440 million in equity and debt stock of Sirius XM Canada in connection with the firm’s recapitalization.

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