TORONTO – An uptick in subscribers helped to push up second quarter revenues at SiriusXM Canada.
For the quarter ended February 28, 2014, revenue grew 6.8% from $70.7 million in Q2 2013 to $75.5 million. The year-over-year increase was due primarily to an increase in the number of subscribers offset by lower ARPU, the satellite radio provider said. Average revenue per user (ARPU) for the period was $11.35, down from $11.60 in the same period last year.
Adjusted EBITDA increased 5.1% year-over-year from $19.1 million to $20.1 million as a result of the company's top-line growth, partly offset by increases in cost of revenue and marketing expenses. Net income rose 8.3% from $4.1 million to $4.4 million.
Sirius XM Canada saw self-paying subscribers jump 7.8% from 1.6 million last year to 1.8 million this quarter, bringing its total subscriber base to 2.38 million.
The company also announced its intention to refinance its outstanding notes due 2018, representing a principal amount of approximately $130.8 million, which if successful, should result in “significant interest expense savings."
"Our growth trend continued in the second quarter of 2014, which led to increases at both our top and bottom line," said president and CEO Mark Redmond, in a statement. "While the most significant growth opportunity in the near term remains in the new vehicle market, we made good progress in Q2 with our used vehicle business. We now have more than 1,200 active dealers in the used vehicle program along with a rapidly growing number of trials underway. As we move through the second half of the fiscal year, our seasonally strong period, we have a number of exciting opportunities with our OEM partners, exclusive content and web-based offering to drive our subscriber and profitability levels higher."
