Sirius XM's Strong Subscriber Growth Bolsters Outlook

Satellite radio provider Sirius XM reported a strong increase in its new subscriber additions for the first quarter of 2015, building on its sturdy 2014 performance. The company added 431,000 net new subscribers during the quarter, a 61% improvement over 267,000 subscribers added in the same quarter last year. Self-pay subscriber additions for the quarter stood at 394,000, way ahead of the year ago figure of 173,000. The strong rise in the number of new subscribers even prompted the company to raise its full year subscriber guidance to 1.4 million from the earlier estimate of 1.2 million. Sirius XM’s diverse content, its aggressive foray in the used car market, and increases in new vehicle sales are driving growth in not only the satellite radio company’s subscribers, but its top- and bottom-lines as well.