Sirius XM Radio added over a half million net new subscribers in Q2 and set a new record for total subscribers at 19,527,448 as of June 30.
In addition, in spite of a relatively poor showing in June new cars sales and present economic jitters, the company announced it increased its guidance for new subscribers for the full year 2010 to 1.1 million net additions. This is the third time Sirius XM upped its subscriber guidance for the year.
CEO Mel Karmazin said, “Our subscriber results mark the best quarter of gross additions, deactivations and net additions since the merger of Sirius and XM in July 2008.” He attributed the gains in subscribers and the ability to retain them to ‘strong execution despite continued economic uncertainty.’ Karmazin added, “The further improvement in our guidance reflects the attractiveness of satellite radio but maintains a cautious outlook for continued improvement in the economy.”
Specifically, the satellite radio company added 583,249 subscribers in Q2 versus a net decline of 185,999 in Q2 2009.
The gains are more impressive for the total first half, as Sirius XM added 754,690 net new subscribers, compared to a net loss of 590,421 net subscribers in the first half of 2009.
In total subscribers are up by 1.1 million from last June.
The company also reported that gross subscriber additions increased by 46 percent and deactivations decreased by 8 percent during Q2 over last year. Self-pay churn improved to 1.8 percent from 2 percent in Q2 2009. Also the conversion rate for new car buyers moving from a free trial to a paid subscription climbed to 46.7 percent from 44.3 percent for the same period last year.
In recent quarters, all of Sirius XM subscriber growth has come from OEM and other subscribers as opposed to retail subscribers.
Source: Sirius XM