Sirius XM Clocks 8 Percent Revenue Growth in FY21 Backed by Subscriber Addons; Declares Special Cash Dividend

A sign for SiriusXM Radio is displayed at the Voxx International Corp. booth 2012 International Consumer Electronics Show at the Las Vegas Convention Center in Las Vegas, on Jan. 12, 2012. (Ethan Miller/Getty Images)

Sirius XM Holdings Inc. reported FY21 revenue growth of 8 percent year-on-year to $8.7 billion.

Sirius reported fourth-quarter FY21 revenue growth of 4 percent Y/Y to $2.28 billion above the consensus of $2.25 billion.

CEO Jennifer Witz said, “2021 was an outstanding year across the board. We added more than one million net new SiriusXM self-pay subscribers for the tenth time in the past 11 years; this growth continues to be sustained by a fifth straight year of improving churn.”

FY21 Segments

SiriusXM segment revenue grew 4 percent Y/Y to $6.62 billion as ARPU rose 5 percent to $14.76 and self-pay subscribers improved 4 percent. The gross margin contracted 100 bps to 61 percent.

Pandora segment advertising revenue increased 30 percent Y/Y to $1.54 billion, boosted by solid monetization and Stitcher acquisition. The gross margin expanded 600 bps to 36 percent.

Subscriber revenue expanded 3.8 percent Y/Y to $6.6 billion. Advertising revenue increased 29.1 percent Y/Y to $1.73 billion.

The FY21 EPS was $0.32. The Q4 EPS of $0.08 beat the consensus of $0.07.

FY21 Others

Adjusted EBITDA climbed 8 percent Y/Y to $2.77 billion.

Sirius generated $2 billion in operating cash flow and held $199 million in cash and equivalents. Free cash flow was $1.83 billion.

Dividend

The board declared a special cash dividend of $0.25 per share.

FY22 Outlook

Sirius sees revenue of $9 billion, marginally higher than the consensus of $8.9 billion. It considers an adjusted EBITDA of $2.8 billion and a free cash flow of $1.55 billion.

By Anusuya Lahiri

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