“Our performance in the first half has been phenomenal on all fronts,” Frear added. “As a result, we are increasing guidance across the board for subscribers, revenue, adjusted EBITDA, and free cash flow. Our adjusted EBITDA guidance includes approximately $19 million of incremental expense from the reported royalty litigation settlement that will be reflected in the second half of 2015. Reported free cash flow in the second half of 2015 will exclude the cash payment we expect to make this month under the settlement.”
Our full year 2015 guidance is as follows:
Net self-pay subscriber additions of approximately 1.6 million,
Total net subscriber additions of approximately 1.8 million,
Revenue of approximately $4.5 billion,
Adjusted EBITDA of approximately $1.62 billion, and
Free cash flow of approximately $1.3 billion.
People who buy new cars fitted with Sirius receivers usually get free access for a few months, but must pay a fee to continue the service.
The number of Sirius’s paying subscribers rose 7.4 percent to 27.7 million as of March 31 from a year earlier – the highest rate of increase in six quarters.
Auto sales in the United States have been healthy in the first three months of the year, with consumer demand for new vehicles strengthening.
Sirius, which competes with music streaming services such as Pandora Media Inc and Spotify, said it now expects to add 1.4 million net new subscribers this year, up from its prior forecast of 1.2 million.
The company also raised its revenue forecast for the full year by $70 million to $4.47 billion.