NEW YORK (CelebrityAccess) — Satellite broadcaster SiriusXM announced a profitable year for 2020, with revenue of $8.04 billion, up by 3% year-over-year from 2019.
While revenue was up, net profits were down substantially for 2020, with SiriusXM reporting that full year net income totaled $131 million, down from $914 million for the full year in 2019. SiriusXM attributed the loss of net income to a $976 million non-cash impairment charge associated with its music streaming service Pandora.
Full year net income, excluding the effect of the impairment, was approximately $1.11 billion, or $0.25 per diluted common share. Adjusted EBITDA grew to $2.58 billion in 2020, an increase of approximately 6% from $2.43 billion in 2019.
“SiriusXM turned in strong operating and financial results in 2020: we grew SiriusXM self-pay subscribers, revenue, adjusted EBITDA, and free cash flow despite the pandemic. Our new car penetration reached approximately 80% in the fourth quarter and is set to rise above 80% this year, and the incorporation of 360L, our next generation in-car entertainment platform, is accelerating,” said Jennifer Witz, Chief Executive Officer of SiriusXM.
During 2020, SiriusXM added 909,000 net new self-pay subscribers, closing in on almost 30.9 Million paying users of the service. Self-pay monthly churn for the full year was 1.7%, a slight improvement over 2019, and marking the fourth consecutive year of improving self-pay churn.
However, total SiriusXM subscriber base of 34.7 million at the end of 2020 was down approximately 1% from the 34.9 million who subscribed to the service at the end of 2019. SiriusXM attributed the decline to lower auto sales, a decrease in vehicle shipments by automakers offering paid trial subscriptions, and a reduction in trial lengths at certain automakers.
For SiriusXM’s Pandora digital streaming platform, the streamer saw both declining ad revenue and monthly active users in 2020. Full year ad revenue at Pandora, which includes off-platform advertisements, declined by 1% over the year to $1.18 billion for 2020.
Monthly Active Users (MAUs) at Pandora totaled 58.9 million at the end of 2020, down from 63.5 million at the end of 2019. Total ad supported listener hours were 12.50 billion in 2020, down from 13.44 billion in 2019.
Gross Profit fell by 8% year-over-year, while subscriber revenue decreased by 2% during the same period.
“The tremendous reach of SiriusXM’s platforms, the company’s unique business model, and the quality of its people attracted me to join the company last fall as CFO. All of these attributes have been affirmed in the past three months since I came on board, and it has been a pleasure to partner with Jennifer as she made the transition to CEO,” said Sean Sullivan, Chief Financial Officer of SiriusXM. Mr. Sullivan became CFO of SiriusXM on October 26, 2020.
“SiriusXM returned approximately $1.81 billion to stockholders in 2020, including $1.57 billion of share repurchases and $237 million of dividends. As previously announced, we increased the regular quarterly dividend by 10% in November for the fourth consecutive year. During the fourth quarter, we opportunistically accelerated the pace of common stock repurchases to $680 million and closed on our acquisition of Stitcher. At the end of the fourth quarter, SiriusXM’s debt to adjusted EBITDA ratio was 3.3x, and we have tremendous liquidity to continue investing in the business and returning capital to stockholders,” added Sullivan.