The stock price of Sirius XM Holdings Inc (NASDAQ: SIRI) fell 3.88% as it went from a previous close of $6.31 to $6.07. This is why it happened.
The stock price of Sirius XM Holdings Inc (NASDAQ: SIRI) fell 3.88% as it went from a previous close of $6.31 to $6.07. Investors are responding negatively to SiriusXM’s first quarter 2021 operating and financial results.
These are the results:— Revenue of $2.06 billion, an increase of 5% compared to the prior-year period— The company recorded a net income of $219 million in the first quarter of 2021, compared to $293 million in the prior-year period.— The first quarter 2021 net income included a $220 million non-cash impairment charge connected to the failure of the company’s SXM-7 satellite, not reflecting any potential insurance recoveries, a $25 million charge related to the surrender of certain office space, and a $95 million benefit associated with a state tax audit settlement.— The net income per diluted common share was $0.05 in the first quarter of 2021, compared to $0.07 in the prior-year period.— The diluted EPS was $0.07 in the first quarter excluding the impact of the two impairments and the tax audit settlement mentioned above.— The adjusted EBITDA in the first quarter was $682 million, up 7% from $639 million in the prior-year period.
“I am pleased to announce SiriusXM has started the year impressively – we added 126,000 self-pay net subscribers, an 83% increase as compared to the period a year ago, saw a first quarter record-low churn rate of 1.6%, and are reporting a new record-high quarterly adjusted EBITDA figure. These strong results reflect the value we bring to our listeners through the breadth and depth of our content. Our advertising revenue grew 24%, driven by robust monetization of both on- and off-platform opportunities, as well as the growing podcast market. While we are benefiting from the broader reopening of the economy and the acceleration of consumers’ digital adoption, the meaningful long-term investments we’ve been making are also paying off. This includes creating and delivering compelling content, strengthening our digital product experiences, and scaling a full suite of end-to-end distribution and monetization solutions for content creators and publishers. We are extremely focused on achieving our 2021 goals and reinforcing our long-term position as North America’s premier audio entertainment company.”
“Across SiriusXM, Pandora and Stitcher, we have added new channels, shows, hosts, and podcasts, enhancing the expertly curated audio entertainment experience across all formats from music to sports. Drake, one of the most streamed artists in the world, launched his exclusive full-time SiriusXM channel, Sound 42. All of our audio platforms were on display as rocker Tom Morello launched a SiriusXM show, multiple new streaming music channels, and a new podcast available on SiriusXM, Pandora and Stitcher. We are working with highly regarded creators on new podcasts; earlier this week we announced the acquisition of 99% Invisible, the acclaimed and popular podcast from Roman Mars and his creator team. This was our first year as the exclusive audio broadcaster of the Masters Tournament, and we have expanded our streaming rights with both the NBA and MLB. We also created special music and talk programming that honored both Black History and Women’s History months back-to-back.”
— Jennifer Witz, Chief Executive Officer of SiriusXM
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