* Q4 EPS $0.01 in line with Street view
* FY 2012 subscriber additions of 1.3 million
* Raises FY EBITDA forecast to $875 million
* To introduce on-demand/personalized radio in 2012
* Shares down 1.4 percent percent
By Yinka Adegoke
Feb 9 Sirius XM Radio forecast
lower subscriber growth than some analysts had expected, saying
customer losses from last month's price increase would slightly
offset the benefits of increasing U.S. auto sales.
The satellite radio operator, which gets the vast majority
of its subscribers through new U.S. car sales, said it would add
1.3 million in 2012.
"This is really conservative guidance, given they added 1.7
million subscribers last year and auto sales are forecast to
increase by 8 percent this year," said analyst Brett Harriss of
Gabelli & Co, which owns Sirius stock.
"They want to make sure they beat guidance," he added.
Harriss expects Sirius to add some 1.65 million subscribers
in 2012. Analysts at Miller Tabak had forecast the addition of
1.45 million subscribers.
Sirius implemented its first-ever subscriber price increases
last month and said it had seen a slight uptick in the rate of
The company raised its forecast for 2012 adjusted earnings
before interest, taxes, depreciation and amortization to $875
million from $860 million. It said it still expected free cash
flow of $700 million on revenue of $3.3 billion for the year.
Chief Financial Officer David Frear said on a conference
call that the company and its board would consider returning
cash to shareholders this year either through a share buybacks
or a dividend payout.
Sirius reported a fourth-quarter profit in line with
expectations, as net subscriber additions jumped 65 percent to
542,966, but revenue came in slightly below Wall Street
The New York-based company, which has radios on the
dashboards of 67 percent of new cars in the United States,
reported net income of $71 million, or 1 cent a share, compared
with a year-earlier net loss of $81 million, or 2 cents a share.
Sirius shares were down 1.4 percent at $2.16 in morning
"Given that the stock is not cheap, trading at mid-teen
multiple teens on an operating cash flow basis, I'm not
surprised the stock is down slightly on any kind of hint of
negative news," said Wunderlich Securities analyst Matthew
The company, which competes with free Internet radio
services such as Pandora Media Inc, reported revenue of
$784 million, against estimates of $785.5 million, according to
Thomson Reuters I/B/E/S.
Chief Executive Officer Mel Karmazin said on a conference
call that Sirius would introduce a Web-based on-demand and
personalized radio services this year at no additional cost to