SiriusXM released its third-quarter 2020 financial results on Thursday morning, showing little effects from the COVID-19 pandemic. Satellite radio revenue exhibiting typical, steady improvement, while advertising revenue, mainly from Pandora, was below third-quarter of 2019 but improved greatly from a pandemic-related fall in the second quarter.
The combined company’s topline results:
• Total revenue grew 1% to $2.0 billion.
• Total adjusted EBITDA improved 12% to 657 million, an all-time high.
• Net income declined 28.2% to $246 million due to expenses from refinancing debt due 2024.
• Advertising fell only 6% year-over-year after a 46% improvement from second-quarter advertising.
SiriusXM’s satellite service had steady improvements from the third quarter in 2019:
• Satellite subscriber revenue improved 1% to $1.6 billion.
• Satellite gross profit grew 7% to $596 billion
Pandora had mixed results that showed the business has recovered from a pandemic-related crash in the second quarter. The following are the third-quarter year-over-year results:
• Pandora’s advertising revenue dropped 3% to $306 million, a big turnaround from the 31 percent decline in the second quarter.
• Pandora’s self-pay net subscribers grew by 105,000. Pandora has two subscription services: a $9.99 premium service and a $4.99 radio tier with limited interactive features.
• Pandora’s September advertising increased year-over-year, said Meyer — but didn’t give the number.
Three full-year guidance metrics were increased from the second quarter:
• SiriusXM’s self-pay net subscriber additions guidance was raised from approximately 700,000 to 800,000.
• Total revenue guidance raised from $7.7 billion to $7.85 billion.
• Adjusted EBITDA guidance raised from $2.4 billion to $2.475 billion.
• Free cash flow guidance was unchanged at $1.6 billion.