SiriusXM Q2 2024 Earnings Report: Subscriber, Advertising Updates

Audio entertainment giant SiriusXM, the home of Howard Stern, reported on Thursday that it lost 100,000 self-pay subscribers in its satellite radio unit in the second quarter, fewer than the 130,000 drop recorded in the year-ago period “due to lower voluntary churn and higher automaker volumes, which were partially offset by higher vehicle-related churn and lower vehicle conversion rates and streaming net additions.”

SiriusXM also lost 73,000 paid promotional subscribers in the latest period “largely due to a shift towards unpaid trial subscriptions by certain automakers.” In the second quarter of 2023, the company had added 171,000.

That meant a total net drop of 173,000 subscribers in the latest period, compared with a gain of 39,000 in the second quarter of 2023.

At its Pandora streaming business, SiriusXM lost 41,000 self-pay subscribers in the April-June quarter, compared with a year-ago gain of 8,000. The company ended June with just below 6.0 million total self-pay customers at Pandora. 

SiriusXM, led by CEO Jennifer Witz, also recorded quarterly advertising revenue in its Pandora and Off-Platform unit of $528 million, up 2 percent over the year-ago period.

SiriusXM’s total revenue for the second quarter amounted to $2.18 billion, down 3 percent, while net income came rose slightly to $316 million. Quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), another profitability metric, was unchanged at $702 million.

Earlier this year, the company cut 160 jobs amid a push to become more “efficient” and “agile.”

Last year, John Malone’s Liberty Media proposed a combination of its Liberty SiriusXM tracking stock group with the satellite radio giant to form a “new, consolidated public company.” Liberty, led by president and CEO Greg Maffei and chairman Malone, back then owned an 83 percent stake in SiriusXM. The deal is expected to close after the market close on Sept. 9.

“As we approach the close of our transaction with Liberty Media, I am proud to report on our continued financial success,” said Witz. “We remain focused on delivering for our listeners and our investors, leveraging our position in audio to innovate and explore new avenues for growth. By pairing the unique
voices and perspectives across music, sports, and politics from our unparalleled live programming with new features and subscription packages, we are poised to capitalize on the opportunities ahead.”

Added CFO Tom Barry: “Our strategic investments in technology and automation continue to reduce costs, improve the efficiency of our teams, and enhance the customer experience.”