SiriusXM Lackluster Q3—Revenue Decline, Subs Stagnant

SiriusXM reports a lackluster Q3 with declining revenues and stagnant subscription levels.

SiriusXM Holdings (SIRI) reported a wider loss than expected in the third quarter of 2024, at 84 cents per share. The same quarter last year saw the company reporting earnings of 90 cents a share. Total revenues declined 4.4% year-over-year to $2.17 billion, missing the consensus mark by 0.91%.

SiriusXM completed its transaction with Liberty Media this quarter and fully emerged as an independent public company. The company is gearing up to reintroduce its business to counteract declining subscriptions and enhance free cash flow generation. SiriusXM has a long-term goal of 50 million subscribers and $1.8 billion in free cash flow.

To that end, subscriber revenues — 75.77% of total revenues — declined 4.86% from the same quarter last year to $1.64 billion, which missed the Zacks Consensus Estimate by 0.14%. Advertisement revenue — 20.73% of total revenues — decreased 2.17% year-over-year to $450 million, which also missed the Zacks Consensus Estimate by 4.61%.

That decline was due to increasing new CTV supply in the market, increasing advertiser spending on performance products, a truncated election cycle, and low podcast inventory.

Self-pay subscribers decreased by 0.99% year-over-year to 31.49 million, while net subscriber loss was 100k against net additions of 94k the same period last year.

Average revenue per user came to $15.16, down 3.38% year-over-year, and missing estimates by 0.53%. This reflects in the number of subscribers on promotional rates and streaming only self-pay plans.

Meanwhile, equipment revenues decreased 12.24% year-over-year to $43 million, a figure that missed the estimate by 9.37%. Other revenues remained unchanged year-over-year at $33 million and beat their estimates by 2.27%.

The company's standalone segment's revenues (74.94% of total revenues) were at $1.62 billion, down by 5.46% year-over-year. Its total subscriber base has declined by 2.39% year-over-year to 33.15 million, missing estimates by 0.19%. That directly contributed to subscriber revenues declining by 5.45%, amounting to $1.51 billion.

Advertising revenues were down 2.38% year-over-year to $41 million, while equipment revenues declined 12.24% year-over-year to $43 million. Other revenues remained at a flat $33 million year-over-year.