Satellite ratio and podcasting streamer SiriusXM returned to earnings in the fourth quarter, posting net income of 8 cents per share, compared to a loss of 16 cents in the period earlier.
Revenue increased 4% to nearly $ 2.3 billion. Both revenue and earnings beat the expectations of Wall Street analysts. The fourth quarter and the full year 2020 was affected by a $ 976 million non-cash impairment charge associated with Pandora.
On the company’s 45-minute revenue call with Wall Street analysts, there was no mention of the controversy facing the podcast and streaming audio sector wider. After objecting to Covid’s misinformation about Joe Rogan’s top-rated Spotify podcast, musical artists such as Neil Young and Joni Mitchell and a number of others have taken their music out of service. A day after Young’s catalog left Spotify, SiriusXM relaunched its all-Young channel for a limited run, saying it would “give fans access to the artist’s entire musical world”.
While SiriusXM has expanded its podcast offering through its Stitcher unit and developed a small app-based subscriber base, most of its total business is in cars. The company said its hardware was included in about 82% of new cars sold in the US in 2021, up from 78% in 2020.
Issuing guidance for 2022, SiriusXM said it expects to add about 500,000 self-paid net new subscribers and bring in total revenue of about $ 9 billion. The company ended 2021 with 32 million subscribers.
CEO Jennifer Witz said digital subscribers – aka those who pay to listen to SiriusXM without being in a car – are not currently a “meaningful part of our subscriber base”. But she said the stock is expected to grow.