Sirius XM Radio announced its subscribers in the second quarter increased 14%, due to higher new vehicle sales.
Sirius XM’s net income increased with $3 billion income tax benefit, from $173 million in the same period last year, and revenue was up 13% to $837.5 million. After it added 622,000 new subscribers during the quarter, Sirius now has 22.9 million, with 1.02 million people signing in the first half of this year.
Sirius XM CEO Mel Karmazin said that the increase is due to the fact that now about two-thirds of all new vehicles sold in the US have a a satellite radio and a trial to Sirius, part of the company’s long-term agreements with car makers.
“While we’re coming up with ways to further improve our performance in used cars, we are benefitting from what is largely a numbers game. Cars turning over today in the second-owner market are increasingly likely to have a satellite radio as our new-car penetration rate began to increase materially five or six years ago,” he said.
But although the subscribers’ number increased, the number of paid subscribers after their trials ends remained at a steady level.