SiriusXM Boost 2020 Subscriber ‘Strong’ Demand Forecast

Audio entertainment giant SiriusXM has raised its 2020 customer forecast ahead of CEO Jim Mayer’s appearance at a virtual investor conference on Wednesday.

SiriusXM now expects a full-year self-paid customer net addition of 500,000 to about 700,000. The company reiterated its financial guidance for the year.

“Our business continues to show strong performance and favorable trends as we begin to provide our subscribers and financial guidance with our second-quarter earnings report,” Meyer said in a statement on the initial hit from the novel coronavirus virus pandemic. after. “It is clear that demand for SeriousXM remains strong – quite simply, our unique audio bundle and consumers continue to provide all of the entertainment and information.”

The CEO said that new car sales have improved and a new car penetration rate has increased “due to a strong test funnel that we believe holds up well for the coming quarters.”

Meyer told analysts at the end of July that SeriousXM’s business model was resilient during the epidemic with improving trends. “We are poised for a strong closing for the year, despite the uncertain economic outlook and rising COVID-19 cases in some parts of the country.”

Management has praised its engaging content as the key to attracting and retaining customers.

A major part of the firm’s content offering is coming into focus again by the end of the year. Earlier this year, Mayer said he plans to hold more formal talks with Howard Stern about a possible contract renewal for his The Howard Stern Show as the current five-year deal for it expires at the end of 2020 Will be done.

“Stern has been on SiriusXM for 15 years, and I’m sure we have paid every penny that benefits our shareholders financially,” Meyer said Wednesday. He said he was “personally deeply engaged” in conversations with Stern’s team and “very optimistic” about him. “We continue to make progress.”

SiriusXM, controlled by John Malone’s Liberty Media, previously stated that the current pact was part of a broader “12-year agreement under which legendary broadcaster Stern” has continued to produce and host The Howard Stern Show on SearchedXM. Under the current deal, the financial details of which were not disclosed, SiriusXM started its first venture into video programming with Stern.

Asked a year ago on an earnings conference call Stern said about being open to ideas for his contract, Meyer responded that he had “made it really clear” that “I want Howard Stern” Stay on SeriousXM for as long as Howard wants. To work, “appreciating their” tremendous relationship “that” never got better. ”

In July, he said the talks had picked up steam “I know what Howard wants. And we’re trying to figure out a way to do all those things together. I don’t want to be overly optimistic here, but I am Howard.” I want. Here, “the mayor said then.” We’ll keep working and we’ll get there, I hope at the end of the day, it’ll come down to what Howard wants to do. ”

He shared his hope to have a say on the status of the company’s third-quarter earnings conference call, which usually takes place in late October.

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