Satellite tv for pc radio big SiriusXM noticed a 6% income acquire and added 279,000 subscribers in its satellite tv for pc radio enterprise, though it confronted “headwinds” with its Pandora unit, which misplaced 63,000 subscribers and recorded a $976 million impairment cost, due primarily to royalty fee prices.
The corporate had warned traders of the cost final month in its steering. Pandora has confronted challenges as streaming listeners embrace Spotify and Apple Music over extra lean-back providers.
The cost contributed to the corporate’s swooning from a $243 million revenue in This fall 2019 to a lack of $677 million, regardless of a 6 p.c income acquire to $2.19 billion.
“We have now a taken pragmatic view of royalty prices in our assumptions,” CFO Sean Sullivan mentioned on Tuesday’s earnings name. New CEO Jennifer Witz struck an optimistic tone as she spoke of the corporate’s efforts to strengthen Pandora, which it acquired lower than two years in the past for $3.5 billion, mentioning podcasts and higher availability in vehicles.
“We’re clearly centered on a decline in listenership. It has been tougher than we anticipated. However the monetization has been very sturdy at Pandora,” she mentioned.
General, SiriusXM added 407,000 self-pay subscribers within the last quarter of 2020, up 65,000 yr over yr, for a complete of 34.7 million complete customers on the finish of final yr.
Pandora ended the yr with slightly below 6.3 million customers, and additionally marked a 1% drop in promoting income, which the corporate cited as pandemic-related. General This fall advert income was up 22% to $425 million.
“SiriusXM turned in sturdy working and monetary leads to 2020: We grew SiriusXM self-pay subscribers, income, adjusted earnings earlier than curiosity, taxes, depreciation and amortization, and free money stream regardless of the pandemic,” Witz mentioned.
She additionally spoke optimistically of Howard Stern’s contract renewal for each new and archived reveals, a robust displaying for comic Kevin Hart, and the corporate’s ongoing push into podcasts, marked by its acquisition of Stitcher.
“SiriusXM, Pandora and Stitcher, along with our funding in SoundCloud, now attain an viewers of greater than 150 million individuals. We’re bolstering our place as North America’s main audio leisure firm with new progressive discuss reveals and podcasts, streaming music channels focusing on youthful audiences and prolonged offers with main media manufacturers, corresponding to NBCUniversal Information Group,” she mentioned.