TORONTO – Record annual revenue, fueled by subscriber growth, helped to power SiriusXM Canada to its first full year of positive net income.
Revenue grew 11.3% to $288.9 million from $259.6 million in FY2012 for the year ended August 31, 2013 (FY2013). Net Income increased to $12.2 million from a net loss of $4.2 million last year, and adjusted EBITDA increased 47.6% to $68.7 million from $46.6 million in FY2012 as a result of the company's top-line growth combined with a decrease in administrative and IT expenses, which was offset, in part, by a higher cost of revenue and marketing costs.
For the fourth quarter, the satellite radio provider reported that revenue grew 11.2% to $75.7 million from $68.1 million over the same period last year, while net income dropped 33.3% to $4.1 million from $6.1 million. Adjusted EBITDA increased 35.6% to $16.6 million from $12.2 million in Q4 2012.
In its second year as a combined entity, Sirius XM Canada saw self-paying subscribers jump 9% from 1.58 million last year to 1.72 million this year, bringing its total subscriber base to 2.43 million. ARPU increased slightly year-over-year from $11.65 to $11.72.
President and CEO Mark Redmond called 2013 “a successful year in which we met or exceeded the key operational and financial goals we set”.
"Our strategic priorities are to grow our subscriber base, retain those subscribers, deliver unrivaled content and leverage SiriusXM's technology innovation to launch new products and services”, Redmond said in a statement. “To deliver on these objectives, we will expand our footprint with the OEM product lines; pursue opportunities in the pre-owned vehicle market; continue to give our customer more control over more content, which they can enjoy in more places; and, remain at the forefront of new technologies, helping to drive innovation in terms of the features and content available to owners of the emerging ‘connected car’.”
