SiriusXM said there are currently about 50 million cars on the road equipped with SiriusXM, up from 40 million last year.
That figure should double to 100 million over the next five years, said new interim CEO Jim Meyer, on a conference call Tuesday morning, announcing the satellite radio company’s 2012 financial results.
The penetration in new car models remains at about 67 percent.
For the full year, SiriusXM added about 2 million net subscribers, it highest level since the merger in 2008 of Sirius and XM. Total paying subscribers is now at 23.9 million.
The used car business continues to grow. It resulted in over 1 million gross subscriber additions in 2012, and should climb to 1.5 million in 2013.
The company said it hired in October a senior Microsoft executive to assume responsibility for music streaming, infotainment and telematics, as well as product technology. Hinting at its advantage over Pandora and Internet Radio, Meyer said, “We believe we are beginning to see the fruits of some of these efforts in iP. Some of these will make their way into automobiles, having both a satellite connection and iP connection, which will prove to be a durable advantage over our iP competitors. Stay tuned..”
Financially, SiriusXM announced improvements in both revenue and net income for 2012. Revenue climbed 13 percent, to $3.4 billion and net income hit $3.5 billion, which includeed a $3 billion tax benefit. Churn remained consistent at 1.9 percent and the conversion of trial customers to paying customers remained in the 44 to 45 percent range.
For 2013, the company expects net subscriber additions of 1.4 million. Revenue is expected to hit $3.7 billion.
Source: CEoutlook
