TORONTO – In advance of their pending merger, XM Canada and Sirius Canada released their consolidated standalone financial results for the third quarter ended May 31, 2011.
Revenue at Sirius Canada jumped 19.1% to $43 million from $36.1 million, and EBITDA, excluding merger costs of $0.4 million, improved by 43.1% to $7.3 million from $5.1 million. Self-paying subscribers were up 16.5% to 866,430 from 744,000 in the same quarter last year.
At XM Canada, revenue increased 18.7% to $16.8 million from $14.1 million, while EBITDA, excluding $2.5 million in merger costs, improved by 56.4% to negative $1.6 million. Self-paying subscribers grew by 10.4% to 457,800 from 414,500 in the third quarter of 2010.
The results do not reflect the financial position of the merged entity but instead reflect the financial position of XM Canada and Sirius Canada as standalone entities for the period ended prior to the merger.
"While both XM Canada and Sirius Canada’s numbers are impressive on a standalone basis, the merged entity is currently expected to accelerate growth and profitability in a significant way going forward," said Mark Redmond, president and CEO of SiriusXM Canada, in a statement. "The combined entity now has over 1.9 million total subscribers placing SiriusXM Canada in the top tier of media and entertainment companies in Canada. We now have a company with revenues in excess of $200 million annualized and currently expect to realize synergies of approximately $20 million on an annualized basis over the next 18 months. Our seasoned management team and strong cash flow position us well for the future."
Coinciding with the completion of the merger, SiriusXM Canada also closed its refinancing. As a result, the merged entity now has a total of approximately $150 million in long term debt outstanding.
