Sirius’ Subscriber Outlook Increased During Second Quarter on Strong US Auto Sales image

Recently, Sirius XM Radio said that the number of customers reached 25 million during the second quarter, thanks to increased auto sales.

Jim Meyer, CEO of Sirius, said that during the second quarter there were 715,000 new net subscriber additions, an increase of 15% and a record since Sirius was merged with XM in 2008. So far this year Sirius has risen its target for net subscriber additions by 100,000 to 1.5 million.

During the first quarter the company said it has added 452,890 net new subscribers and reached a profit of $124 million, an increase from $108 million during the same period last year, and revenue increased to $897 million from $805 million.

Sirius XM Radio is currently investing in telematics, which is automated security and safety services in cars, similar with GM’s OnStar brand. Besides telematics services, which include roadside assistance and stolen vehicle tracking, Sirius will also offer ‘infotainment’ and entertainment services such as gas prices and weather information.

“The specific pieces of how we’re going to evolve down that path will take shape in the next six to 18 months,” said CEO Jim Meyer.

Analysts believe that the idea of diversifying Sirius’ revenue is not bad at all taking into consideration that competition in this area gets tougher and tougher, if we are to think at Pandora for example.

Source: Autonews