(Reuters) – Audio company Sirius XM exceeded fourth-quarter revenue estimates on Thursday, driven by steady demand for its live sports shows, which became popular over the 2024-2025 NBA season and the inaugural 12-team college football playoff last year.
The audio entertainment provider is also benefiting from its partnerships with car manufacturers including Toyota and Lexus by securing in-car access, allowing car buyers to leverage free trial subscriptions to Sirius XM’s satellite radio services.
The company launched its service in the fourth quarter in select Tesla and Rivian models, as part of each company’s holiday update.
Sirius XM’s self-pay subscribers rose 149,000 in the quarter ending Dec. 31, compared with a rise of 131,000 a year ago. Visible Alpha had estimated a 136,780 increase.
Its fourth-quarter churn, which is the rate of customers who stopped using its services, was 1.5% among self-pay users compared to 1.6% a year ago, while paid promotional subscribers declined by 79,000.
Sirius XM reported fourth-quarter revenue of $2.19 billion, marginally above analysts’ average estimate of $2.17 billion, according to data compiled by LSEG.
Advertising revenue in the reported quarter was $477 million, above analysts’ average expectation of $309.7 million.
The company posted a quarterly net profit of $287 million, compared with $228 million a year earlier.
(Reporting by Kritika Lamba in Bengaluru; Editing by Pooja Desai)
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