One of the leading satellite radio companies in the U.S. – Sirius XM Holdings Inc. (NASDAQ:SIRI) – reported 1.66 million subscriber additions in fiscal 2013, significantly exceeding its guidance of 1.60 million customers.
Such robust growth in subscribers is mainly attributed to increased automobile sales and the continuous launch of innovative products. SIRIUS XM gained approximately 1.66 million subscribers in fiscal 2013 as compared with 2 million subscribers added in the last year. Moreover, the company gained 1.5 million Self-pay net additions as compared with 1.66 million in the prior year.
According to the new deal with the company’s major customer, General Motors, the auto giant stopped the payment of promotional money to Sirius XM Holdings Inc. (NASDAQ:SIRI). This is expected to result in the loss of some paid promotional customers. Furthermore, the total subscriber base at the end of fiscal 2013 was 25.56 million as compared with 25.58 million in the prior year.
In July, SIRIUS XM entered into a partnership with AT&T Inc. (NYSE:T) to offer emergency support, stolen vehicle tracking and roadside assistance to all connected Nissan Motors cars in North America.
A solid product portfolio coupled with strong business relationships with different car manufacturers like Ford Motor Company (NYSE:F) and Nissan has helped the company raise its 2014 fiscal subscriber outlook.
Recently, Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA) has decided to acquire the remaining 47% stake from Sirius XM Holdings Inc. (NASDAQ:SIRI). Per the deal, in a tax-free transaction, each share of SIRIUS XM will be converted into 0.076 shares of a new issue of Liberty Media Series C common stock. The existing Series A and Series B shareholders of Liberty Media will get 2 shares in the Series C stocks for each share they possess. The deal is subject to the approval of a special committee of independent directors and public stockholders of SIRIUS XM, other than Liberty Media.
Currently, Sirius XM Holdings Inc. (NASDAQ:SIRI) has a Zacks Rank #2 (Buy).
Disclaimer: This article is written by Zacks Equity Research and originally published at Zacks.com.