(Reuters) - Satellite radio provider Sirius XM Radio Inc (SIRI.O) posted on Tuesday higher results for the first quarter, and appointed Jim Meyer to be its permanent chief executive.
Meyer had been interim CEO since December when he joined the company’s board. Meyer, 58, arrived at Sirius in 2004, the same year as its former CEO Mel Karmazin, and oversaw the relationships with the auto industry, which accounts for the bulk of the company’s revenue.
Former colleagues have described Meyer as the former “No. 2” executive who worked closely with Karmazin for eight years. Meyer told investors last quarter not to expect any big changes under him as he focuses on subscriber growth with a tight focus on costs.
However, people who have worked with Meyer say he lacks strong programming experience. A large part of Sirius XM’s business involves securing high-profile contracts with talent, such as radio host Howard Stern, and airing exclusive content to keep subscribers paying for the service.
Liberty Media LMCA.O, which controls the satellite radio company, had been searching for a new CEO since December and had also been considering external candidates.
Sirius XM added 304,000 self-pay net subscribers in the quarter. It plans to add 1.6 million self-pay net subscribers this year.
The New York-based company said total revenue rose 12 percent to $897.4 million. Analysts were expecting revenue of $905.6 million, according to Thomson Reuters I/B/E/S.
Net income rose to $123.6 million, or 2 cents per share, in the first quarter, compared with $107.7 million, or 2 cents per share, a year earlier. This matched Wall Street analysts estimates.
Sirius XM bought back $494 million in stock in the quarter. It also raised its 2013 annual free cash flow to $915 million.
Sirius XM shares rose 1 percent in premarket trading to $3.10.
Reporting by Liana B. Baker; Editing by Gerald E. McCormick and Chizu Nomiyama