TORONTO – Ongoing subscriber growth at SiriusXM Canada helped to buoy third quarter revenues and profits.
For the period ended May 31, 2016, revenue increased 3.5% to $86.02 million, reflecting growth in its self-paying subscriber base partly offset by a decrease in Self-Pay ARPU, which dipped 1.2% to $12.71.
Net income and comprehensive income of $7.22 million was down 9.3% from $7.96 million year-over-year, mainly due to higher operating expenses and depreciation and amortization, partly offset by revenue improvements.
Adjusted EBITDA for the quarter grew 3% to $20.8 million from $20.2 million in Q3 FY2015. The improvement was primarily due to revenue growth, partly offset by an increase in revenue share and royalty costs related to higher revenue and OEMs migrating away from the Sirius chipset to the XM chipset.
Sirius XM Canada saw self-paying subscribers grow 4.9% from 1.87 million at this time last year to 1.96 million this quarter, bringing its total subscriber base to 2.75 million.
"Throughout the quarter, we further enhanced our programming line-up, launching new shows, channels and extensive sports coverage," said president and CEO Mark Redmond, in the news release. "The unmatched listening experience we offer continues to drive growth in our subscriber base. We recorded close to 9,000 net self-pay additions in Q3, resulting in year-over-year improvements in both revenue and Adjusted EBITDA. We remain committed to providing our subscribers with access to unrivaled content and supporting Canada's amazing talent with a platform to be heard."
The company also provided an update on its plans to recapitalize by way of a go-private transaction, announced in May. It’s board of directors (with the interested directors abstaining from voting and not participating in the approval of the Arrangement) has recommended that shareholders approve the arrangement at a special meeting set for August 30, 2016. It has also filed a submission with the CRTC requesting approval.
