Sirius Beats Subscriber Target, Holds Steady on 2014 EstimatesCrayton Harrison
Sirius XM Holdings Inc., the satellite-radio company weighing a buyout offer from Liberty Media Corp., said it surpassed its target for subscriber growth last year.
Sirius added 1.66 million customers in 2013, just above its 1.6 million forecast. The company continues to expect sales of more than $4 billion in 2014 and earnings of $1.38 billion, leaving out interest, tax, deprecation and amortization, according to a statement yesterday. An additional 1.25 million subscribers will sign up this year, the company said.
The forecasts may help investors determine the merit of Liberty’s $10.6 billion all-stock offer for full control of New York-based Sirius. The satellite-radio company’s shares have traded above the value of the proposal since it was announced last week, signaling that shareholders expect Sirius to negotiate for a higher bid.
The company's board has formed a special committee led by former DirecTV Chief Executive Officer Eddy Hartenstein to examine Liberty's proposal. Directors James Holden and Joan Amble are also part of the group, said Patrick Reilly, a spokesman.
Sirius’s sales forecast compares with an average estimate of $4.17 billion in revenue, according to a survey of analysts compiled by Bloomberg.
The company actually recorded a decrease of about 20,000 subscribers in the fourth quarter, leaving it with a total of 25.6 million. Sirius had anticipated that drop, saying in October that a contract change with a large manufacturer would significantly reduce its number of trial customers at the end of the year.