Sirius XM (NSDQ: SIRI) CEO Mel Karmazin has said for months now that his company’s performance would improve considerably soon — and on Thursday he delivered. Sirius XM posted a six percent increase in revenue to $684 million and net income of $14 million, up from a net loss of $246 million during the same period a year ago. As several observers pointed out, It was the company’s first quarterly profit since it was formed by the merger of Sirius and XM in July 2008. Both figures were ahead of analyst expectations.
Sirius XM had already pre-announced some of the drivers of its performance, including 247,182 net subscribers adds during the quarter — the highest number since Q308. The company also says that rate increases in multi-subscription and internet packages helped — and offset a drop in advertising revenue.
For the full year ahead, Karmazin says the company now expects 500,000 net adds — which he says will bring the number of Sirius XM subscribers to a record high.