TORONTO – Despite increases in revenues and subscribers, SiriusXM Canada saw second quarter profits plunge by 62.4%.
For the period ended February 28, 2017, revenue of $86,946 increased 3.0% from $84,387 year-over-year, reflecting growth in its self-paying subscriber base. Self-pay ARPU dipped 0.2% to $12.47 mainly due to increased promotional activity, the company said late Wednesday.
Net income and comprehensive income of $10,612 was well below the $28,245 recorded in the same period last year, which the company said was mainly due to $15,887 withholding tax recovery in Q2 FY2016 and higher operating expenses, partly offset by higher revenues.
Adjusted EBITDA for the quarter fell 3.5% to $23,933 from $24,810 in Q2 FY2016, primarily due to higher revenue share and royalty costs, and information technology expenses, partly offset by higher revenues and lower administrative expenses.
Sirius XM Canada saw self-paying subscribers grow 4.5% from 1.95 million at this time last year to 2.04 million this quarter, bringing its total subscriber base to 2.78 million.
President and CEO Mark Redmond said that the company is still awaiting the CRTC’s decision on its planned recapitalization go-private transaction.
"We are pleased with the growth in revenue and subscribers we achieved in the quarter, which reflects the success of our unique programming lineup and superior entertainment experience," said Redmond, in the news release. "To further solidify the value of our offering, in the quarter we also made investments in information technology and infrastructure to improve customer care and retention."
