TORONTO – Solid subscriber growth at SiriusXM Canada helped to drive up fiscal 2015 first quarter revenue and profits.
For the period ended November 30, 2014, revenue grew 3.3% to $79.0 million from $76.4 million for the same period last year. The year-over-year improvement reflects growth in the company's self-paying subscriber base and an increase in self-pay ARPU, which were partially offset by a reduction in promotional revenue due to revised terms related to contract renewals with certain OEM partners
Adjusted EBITDA of $22.9 million improved by 6.9% from $21.4 million in Q1 FY2014 as a result of revenue growth, which was offset, in part, by a higher cost of revenue due to an increase in the company's copyright fees. Net income shot up 67% to $8.0 million from $4.8 million year-over-year.
Sirius XM Canada saw self-paying subscribers grow 5.2% from 1.76 million last year to 1.85 million this quarter, bringing its total subscriber base to 2.60 million.
President and CEO Mark Redmond said that the company “firmly believe(s) we are positioned for continued growth in fiscal 2015”.
"During the quarter, we delivered top-line growth, increased profitability and grew our free cash flow," Redmond said in the news release. "Our results are a testament to the strength of our overall business model and value of our service offering. We generated revenue growth in the face of higher churn related to our increased music royalty and regulatory fees, much of which was driven by an increase in self-pay ARPU. We also realized an increase in adjusted EBITDA and strong free cash flow despite significantly higher copyright fees and greater capital expenditures.”
