SIRIUSXM first quarter 2023 revenue fell 2% year-to-year to $2.14 billion and net income fell from $309 million to $233 million (6 cents/diluted share). Adjusted EBITDA dropped 9% to $625 million.For the SIRIUSXM division, revenue also fell 2% to $1.7 billion. Gross profit fell 5% to $1 billion. The number of SIRIUSXM self-pay subscribers dipped by 347,000 to 32 million, hit by reductions in trial starts for new and used vehicles. Self-pay monthly churn was at a near-record-low 1.6%.The PANDORA and Off-Platform division’s revenue fell 1% to $462 million, with gross profit falling to $111 million. Self-pay subscribers to PANDORA Plus and PANDORA Premium rose by 7,000 to 6.2 million, a 2% decrease.“Our performance in the first quarter — underscored by our sustained low churn, high customer satisfaction, and strong margins — exceeded our expectations at the beginning of the year and strengthened our confidence to raise our financial guidance for the year. SIRIUSXM continues to demonstrate the enduring power of our premium audio services, differentiated programming, and our unique position in the audio entertainment market,” said CEO JENNIFER WITZ. “We are modernizing our technology suite to bring more value to existing and new audiences as we help connect listeners to incredible moments happening on our air every day. We expect our next generation SiriusXM experience will bolster our business in the years to come, and at the same time, we are taking a disciplined approach to reducing costs across the organization.””Our strategic approach to invest, enhance, and innovate in an otherwise challenging environment underscores the strength of our business, and we expect to improve our financial and subscriber performance quarterly for the remainder of the year,” said incoming CFO THOMAS BARRY. “It is an exciting time to be at SIRIUSXM; in my new role, I look forward to working with this dedicated team to improve efficiencies, build on our extremely solid business model, and continue our tradition of delivering top value to our listeners and stockholders.“In the first quarter, SIRIUSXM returned approximately $161 million in capital to stockholders via $94 million in recurring dividends and $67 million in common stock repurchases. We ended the quarter with net debt to adjusted EBITDA of 3.4 times.”The company has increased its full-year 2023 guidance for Adjusted EBITDA of $2.75 billion and free cash flow of about $1.1 billion. The company reiterated its guidance for revenue of $9 billion.
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