Sirius XM attributes 14% rise in subscribers in 2Q to higher new-car sales

Article by Anita Panait, on August 9, 2012

Sirius XM Radio Inc. posted a 14-percent increase in subscribers in the second quarter of 2012, attributing the surge to higher new-vehicle sales. Sirius XM posted $3.1 billion in net income in the second quarter of 2012, boosted by a $3 billion income tax benefit, compared to $173 million in the same period in 2011.

Sirius XM logged a 13-percent rise in revenues to $837.5 million. At the end of the second quarter 2012, Sirius XM had 22.9 million subscribers, boosted by around 622,000 subscribers during review period, and 1.02 million subscribers during the first half of 2012. According to Sirius XM chief executive Mel Karmazin, around two-thirds of all new vehicles sold in the United States are fitted with a satellite radio and a trial to Sirius, thanks to the company’s long-term deals with carmakers.

Karmazin was also pleased with Sirius XM’s growth in the used-vehicle market. Karmazin said that vehicles relegated to the second-owner market are likely to have a satellite radio. The company’s new-car penetration rate began to increase materially five or six years ago.

According to Sirius, the rate of people becoming paid subscribers after their trials terminates remained steady. Sirius XM chief financial officer David Frear said that the new vehicle consumer conversion rate was around 45 percent for the second quarter of 2012, a figure similar to the numbers posted in the second quarter of 2011. Karmazin disclosed that Sirius XM has conservative auto-sales expectations for the second half of 2012, as the economy shows signs of "tepid growth."

If you liked the article, share on:

Comments

Recommended

An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Audi will be offering something exciting for its United Kingdom market. The company announced that it will be adding new features as standard to the A4 range. It also confirmed...
by - May 24, 2017
You guys are probably aware of the collaboration between Mercedes-Benz and Renault-Nissan. Knowing this, you would expect that both companies will come up with something impressive. Sources say that the...
by - May 24, 2017
Amongst all sports cars on the planet, which one is the world’s best-selling model? Would you have guessed that it is the Ford Mustang? According to IHS Markit’s global automotive...
by - May 24, 2017
It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries