So we believe no matter what path the OEM chooses we'll be really well-positioned there. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The Gerry Maybe for Jennifer on distribution, you called out the partnership with Walmart+ announcing the quarter. Sirius XM has rattled off 13 consecutive years in the black, the kind of reliability that may be boring to its early fans but is what sells out arenas and stadiums in this investing climate. And obviously theres the impact of revenue share as well, and were constantly navigating the interaction of those three economic levers with increasing penetration rates where it makes sense. And, Sean, best of luck in your new opportunity. Good morning. The Motley Fool has a disclosure policy. We also launched fluency, a cultural practice helping brands connect with young diverse audiences in audio by providing insights to support campaigns and creative strategy. And then maybe the same question sort of on the in-car business. At this time, Ill turn the conference over to Hooper Stevens, Senior Vice President of Investor Relations and Finance. SiriusXM WebSirius XM offers tons of wildly interesting channels you can explore, which can be found by following this link. Looking at the capital allocation for first quarter of 2023, we return to $160 million to the shareholders comprised of 94 million of dividends and 67 million of stock repurchases, as we reentered the market following our fourth quarter results. Thank you, and good morning, everyone. As Jennifer noted, the first quarter played out as we expected, albeit with a bit stronger finish to our advertising revenue performance, and gradually improving trial starts. Oh, thank you. And as we have always said, business models really do matter. Additionally, we are ramping up our marketing technology capabilities to better leverage our rich content to deliver more personalized messaging in our marketing efforts. On the positive side, however, our test-and-learn strategy will enable us to improve streaming subscriber results sequentially throughout the remainder of the year, even with a lower baseline of spend. The change in royalties was driven by the expiration of the discounted rates on pre-1972 music as of the end of 2022 and a CRB announced 9% CPI inflater on webcasting performance rights. Thanks, David. This satellite capex spending will be in the $300 million range per year in 2023 and 2024, before declining to approximately $175 million in 2025, approximately $80 million in 2026, and approximately $20 million in 2027. Against the splintering of sports rights in the video space, we offer incredible value as the one-stop audio home for all major sports, and it's powering record engagement of this content. I was just wondering if you could give us an update on that subscriber kind of loose commentary. Question on the new trends given the new Mercedes-Benz deal and some recent price increases, what are the impacts on ARPU in the near-term? Get your subscription for $40 per month and get access to Newsmax TV and others, like Bloomberg, BBC America, and Cheddar Business. I will now turn the call over to Sean for some brief remarks, and then Tom will go through the financials in more detail. The majority of our trial funnel as you would expect, is represented by the millions of trial starts that we do every year through our automotive partners. Turning to our content, given the strong engagement we continue to see with our extra channels in and out of the car, in the first quarter, we expanded our focus here and launched several new hip-hop and R&B channels, we have seen the percentage of listeners consuming these genres more than double versus a year ago, driven by younger audiences who value the more controlled listening experience. Plus, we've compiled a list of the best overall streaming services for sports fans. So younger generations, in particular, are looking for more opportunities to control is nay experience. And programming and content expenses climbed 6% due to increased licensing fee and production costs. But we are well-positioned to make sure that our incorporation sustains through whatever model the OEMs choose to pursue. Yeah. Despite market and business challenges, Im proud of our good start to the year. And that is because were addressing these pain points. Devices supported by Fubo TV include: web browsers, Android, iOS, Amazon Fire, Roku, Chromecast, Apple TV, LG/Samsung Smart TVs, and Xbox One. Our total new and used car penetration rate was 80% and 55% respectively, and our enabled fleet stands at about 154 million vehicles. Sirius XM ( SIRI 1.35%) Q1 2023 Earnings Call. Hooper Stevens. And we will continue to be active in generating trials. The Rob Carson Show gives you a humorous yet concerned analysis of Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. So Q1 was impacted, as we said, by lower fourth quarter trials than third quarter. In short, I am pleased with our financial performance this quarter and Im confident in our opportunity to expand our subscriber base as auto sales recover, and we launched the next generation Sirius XM experience later this year. ET. So Stephen, the Walmart and T-Mobile have been great partners and Im very pleased that weve been able to launch with them and test out different trial offers. As previously discussed, we reduced marketing spend, particularly around streaming in anticipation of product improvements we are launching later this year. Published: April 25, 2023. And secondly, we look at the totality of the package between the talent, the issues that allowed them to be free to negotiate, and other things. And please let me add my welcome to Tom Barry who may be new to this call but is a veteran of SiriusXM and its finance organization since 2009. So we look at this probably more often than not, but we spent a lot of time looking at this. Thank you, and good morning, everyone. If you have an ad-blocker enabled you may be blocked from proceeding. With a huge number of subscription plans covering every conceivable way to get entertained, Sirius XM is one of the best entertainment platforms around for sure. And so we're really well-positioned on the podcasting side. So the number in Q1 was anticipated, right? And the competitive challenges we have are easily solved with 360L and the new platform that we're launching, and we are starting to see that already in some of our numbers. Some sports might be live on Fubo TV right now. Pandora revenue was down a modest one percent to $462 million during the quarter while its ad-based revenue remained relatively flat at $334 million. And in March, we started to see that tail off a little bit. Good morning. *Average returns of all recommendations since inception. Do not get confused with these three mediums. With strong similarities between talk radio and podcasts, we can do more to seamlessly integrate them across our service and provide more control and discoverability for subscribers, Witz said Thursday. Devices supported by DirecTV Stream include: web browsers, Android, iOS, Amazon Fire, Roku, Chromecast, Apple TV, LG/Samsung Smart TVs, and Xbox One. Thank you. I would like to remind everyone that certain statements made during the call might be forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. Invest better with The Motley Fool. Bye-Bye. WebWhat channel is NewsMax on Sirius XM Sirius M offers a delightful variety of channels designed to suit anyones taste. Its self-paid subscriber numbers also declined two percent to 6.2 million. We also delivered better-than-expected ad revenue, partly due to our leading self-service and programmatic solutions that are allowing us to capture closed-end bookings, and I will address this more in a few minutes. Our extensive portfolio includes chart-topping podcast by EarWolf and Team Cocoa and exclusive channels featuring A-list talents like Andy Cohen, [Inaudible], and Conan O'Brien. But SiriusXM has their own ad-revenue on those news shows. We may receive an affiliate commission from product sales generated through these affiliate links. And whereas other services, you need to sign up for a data plan, we cover the data costs ourselves. The Sirius XM segment delivered $1.7 billion in revenue, which was down 2% principally due to lower OEM paid promotional trial revenue reflected in ARPU of $15.29 and decline subscriber revenue connected vehicle, partially offset by a weighted average subscriber base that was up 1% year-over-year. This decline of $114 million is principally the result of increased satellite capex of $103 million as we invested the construction of SXM-11 and 12 and a one-time severance payment of approximately $15 million related to our cost optimization strategy. On the used car market, just to start with that, the used car sales were actually pretty strong in the first couple months of the year. One, we dont comment on anything were looking at directly. James Ratcliffe -- Evercore ISI -- Analyst. The stock has fallen to the point where its once puny dividend now amounts to a respectable 2.6% yield. What is SiriusXM, What's On, Subscriptions, Shop and Listen Online. But we are continuing to see progress in advance of that on 360L. And that has a lot to do with maintaining our promotional plans and market are discounted plans to be able to better onboard and retain our subscriber base where it makes sense. Politics Radio: News, Analysis & Opinion | SiriusXM But we are well positioned to make sure that our incorporation sustains through whatever model the OEMs choose to pursue. If you're someone who watches a lot of news, you probably want to subscribe to a streamer with access to the most popular news channels. And our first question is from the line of James Ratcliffe with Evercore ISI. SiriusXM has an incredibly solid, profitable business today that benefits from a loyal subscriber base and enviable margins. Were increasingly flexible and even agnostic in how we add subscribers and accommodate listening preferences. We're in about -- I think it's about a third of our new car trial starts have 360L currently, that will increase to about 40% by the end of the year. SiriusXM We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them. At the intersection of the two, our programmatic podcast sales doubled year-over-year, albeit, office small base and contributed to overall podcast ad revenue growth of 34%. In fact, that's why Sling is our top pick for watching Newsmax TV without cable. Thanks, David. Tags: Financials Pandora Radio SiriusXM. Im confident that Toms perspective, diligence, financial expertise, and history with Sirius XM will serve him well as he steps into the CFO role. Sling is available starting at $40 per month for 30 channels, including Bloomberg, BBC America, and Cheddar Business. Seasonality in advertising revenue and the strategic cost-saving measures should deliver ramping EBITDA in the second, third, and fourth quarter. SiriusXM Player: Online Radio, Music, Sports, News, Podcasts & Talk I was hoping you can maybe talk a little bit more about the third-party distribution strategy. And right now were certainly seeing significant take up in Android automotive operating system, the integrated software from Google. The other two components of Sirius XM's full-year outlook -- adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of roughly $2.7 billion and $1.05 billion in free cash flow -- are well below last year's results. Our team is working diligently to position us for success in the second half of 2023 and beyond. Learn More, Sirius XM(SIRI 2.70%)Q12023 Earnings CallApr 27, 2023, 8:00 a.m. Thank you for taking the question. And we are starting to see that already in some of our numbers. Sirius XM Before jumping into the quarters results, Id like to welcome Tom Barry as our incoming Chief Financial Officer. SiriusXM Set to Open New Broadcast Facilities in Miami So what's key is the rollout, and this has been a long time coming, and the promise of 360L is now delivering. We're investing in our future. Sure. We do expect to see future quarter-over-quarter progress in self-pay net adds but we still anticipate being modestly negative for the full year in aggregate. And I think ultimately, ARPU as well because we can deliver even more content and features to our subscribers. But is that just too fringe for you? But my overall view is to work on obviously optimizing the business, support the growth of the business and position us for the year ahead. Thanks Matt. And please let me add my welcome to Tom Berry, who may be new to this call, but is a veteran of Sirius XM and its finance organization since 2009. Our total new and used car penetration rate was 80% and 55%, respectively and our enabled fleet stands at about 154 million vehicles. Sirius XM is trading for less than 12 times trailing earnings. This feature drives listener engagement that leads to higher retention. Thank you. We'll share progress on future quarterly calls, but the first months of 2023 has already brought several exciting product iterations and consumer offers, providing valuable insights for the full platform relaunch later this year. What do you see as the right leverage profile, the right mix of capital returns? To make the world smarter, happier, and richer. Thanks, Stephen. Sirius XM shares hit a new seven-year low last month. Over the next few years, 360L will continue to expand across OEMs including on select Mercedes-Benz models as part of an agreement that will increase the installation of Sirius XM to make it a standard feature on all Mercedes-Benz models available in the United States. This feature drives listener engagement that leads to higher retention. But positioning for the future, we have had a long history since we launched of annual average increases in ARPU of about 3%. Good morning. And I believe that is a very strong proof point for what we can continue to drive and see when we launch this new platform that is going to support 360L, but also drive cross-listening in and out of the car and provide much more personalized listening experiences. Talk to you later. We have a service with very high satisfaction, low churn and one of the leading ARPUs across direct-to-consumer media, not just audio. The Howard No, Newsmax TV isn't included in your Philo subscription. Thank you. We're investing in satellites. To make the world smarter, happier, and richer. SiriusXMs satellite radio service has been built in part with the help of dozens of talk personalities, most notably Howard Stern. Podcasting continues to be a bright spot, Witz said. This contributed to the expected negative subscriber growth in the quarter. So I think you were saying on the last quarter call that, well, you werent formally guiding for a number for subs for this year. Thank you, Jennifer. Rob Carson's background includes writing comedy for the legendary late Rush Limbaugh, and many refer to Rob as "the modern-day Rush." The fourth quarters trial starts declined sequentially by 3% and 7% for new and used vehicles, respectively, and this reduced conversion opportunities for us in the first quarter. And then we just have these solutions in market for advertisers to come in and either buy across our network on an audience basis or buy show level and even custom integrations. We ended the quarter with a leverage at 3.4 times, which is within our targeted range of low to mid-threes. And as Tom referenced earlier, we also expect each quarter going forward to be better to the prior quarter. Newsmax is going to be moving into other audio opportunities, Lee Kinberg, CEO of Newsmax Radio, said. The majority of our trial funnel as you would expect, is represented by the millions of trial starts that we do every year through our automotive partners. Sirius XM While we continue to see opportunities for a bigger streaming-only business, car sales will remain the dominant driver of our subscriber funnel. One, we don't comment on anything we're looking at directly. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. And is it really the downward pressure we've seen over the last few years had a lot to do with the dramatic increase we saw in pen rates over that time period. Like how should we think about the cadence of ARPU from here this year as well as what would the longer-term impacts be from any of the newer auto deals since we saw some of the promo numbers increase here? Newsmax All discussions of adjusted operating results exclude the effects of stock-based compensation. And I guess what I wanted to ask about is just a follow-up on the subscriber progression here. Thank you. SiriusXM-owned Pandora continues to see its reach shrink, however. WebYou can stream NewsmaxTV with a live TV streaming service.No cable or satellite subscription needed. SEE INFOTAINMENT DETAILS SIRIUSXM TRAVEL LINK Read our full review of DirecTV Stream and visit our TV guide to DirecTV Stream to find out what you can watch right now. While the exact timing of construction milestone payments can inevitably shift, this gives us a general idea of the trajectory and the scope of spending. This satellite CapEx spending will be in the $300 million range per year in 2023 and 2024 before declining to approximately 175 million in 2025, approximately 80 million 2026, and approximately 20 million 2027. Our advertising business operated under the unified SXM Media banner delivered solid first quarter results bolstered by growth in podcasts and programmatic sales. As we develop our new Sirius XM platform, we are rethinking how we surface and deliver talk content and see opportunities to better combine live shows with on-demand podcasts to serve the diverse preferences of listeners. It continues to be supported by the millions of trial starts we generate each quarter through our robust and long-term OEM partnerships. So some OEMs will choose to pay for the trial and receive a higher subsidy. Q1 2023 Sirius XM Holdings Inc Earnings Call - Yahoo Finance [Operator Instructions] Thank you. Ending May 2 at 11:10AM PDT 6d 21h. In this past month, we have all worked together to ensure a smooth transition. As Jennifer noted, the first quarter played out as we expected, albeit with a bit stronger finish to our advertising revenue performance and gradually improving trial starts. And while we may in fact be a potential or logical home for anybody that fits into those voices. Nonetheless, if you are looking for a conservative Thanks. So how do you think about conversion rates on new car trials today versus where you were historically, I think, in that sort of mid-30s range? Jennifer, could you talk a little bit about the subscriber outlook for the rest of the year? Matthew Harrigan -- The Benchmark Company -- Analyst. Sirius XM reports first-quarter results on Thursday morning. Additionally, we debuted our first ever integrated billing with T-Mobile, expanding upon our existing six-month Sirius XM streaming offer and adding a Pandora premium four-month trial offer, making it even easier for trialers to transition into paying subscribers. Talk to you later. Alexa, sign up for to Sling, Fubo TV, or DirecTV Stream to get Newsmax TV on Amazon devices. The Rob Carson Show gives you a humorous yet concerned analysis of daily political events and how they affect struggling Americans, as well as exclusive interviews with influential hard-hitting guests. Have an iPhone? They will improve over the course of the year as will overall total net ads. We are already beginning to see benefits from cost reductions implemented in Q1 across every element of our business. Hey, good morning. In the Pandora and off-platform segment, total revenue was $462 million, nearly flat with prior year. One of the things we're most proud of, is the true diversity of voices we have on the platform, and basically letting our subscribers and listeners and trialers decide what they want to listen to at any given moment. But he said while SiriusXM may be a potential or logical home for Carlson or Lemon, Greenstein said they consider the totality of the package which would likely include whether advertisers would support their shows and whether there would be a backlash from subscribers or employees. If your radio is Sirius, only Sirius packages can be used. But we're not seeing any major changes in the market that I would highlight. Well continue our current process of being cautious and disciplined. Our next question is coming from the line of Stephen Laszczyk with Goldman Sachs. Turn on the FoxNews simulcast on siriusxm, and turn your tv on as well. What are you guys seeing among OEMs in terms of their positioning around third-party interfaces on the DASH versus their own? You have permission to edit this article. We'll target leverage in the low to mid-3s in light of the macroeconomic factors. There are things worse than single-digit revenue growth. And we've settled in at this sort of range in the low 80s that I think is the optimal place for us going forward. Thanks for that color. Or is there anything different that you can talk to at this point? For example, we introduced a new in-app onboarding experience for users to select genres allowing faster, more efficient access to the most relevant content. Before jumping into the quarter's results, I'd like to welcome Tom Barry as our incoming chief financial officer. I just saw a stat the other day that we watch quite frequently about intent to buy and its at one of the highest levels weve seen over the last couple of years. We haven't changed the guidance on subscribers, so still expecting modestly negative for the year. Just subscribe to Sling, Fubo TV, or DirecTV Stream to get Newsmax TV on your Android smart TV. Thank you for taking the question. We help resolve pain points facing marketers by using greater automation and making buying more efficient. The choices for watching Newsmax TV aren't limited to our top picks. This past quarter, we introduced a first of its kind six-month trial offer for Walmart+ members, giving them the choice of in-car or streaming-only packages. We're investing in the new platforms. OK. And to the point on 360L, can you give us a sense of right now how material 360L is for your subscriber acquisitions? I will now turn the call over to Sean for some brief remarks, and then Tom will go through the financials in more detail. Download the SiriusXM Dealer App. No matter how or where they want to listen. At the intersection of the two, our programmatic podcast sales doubled year over year, albeit off a small base, and contributed to overall podcast ad revenue growth of 34%. I mean what portion are coming in on that platform? As we previously discussed, CapEx should increase by some 200 million for the full year 2023 as we ramp SXM-11 and SXM-12 on top of ongoing preparation for SXM-9 and SXM-10. Other channels on DirecTV Stream include: Cable News Network, HLN, Turner Classic Movies, TV Land, A&E, AMC, BET, Bravo, Comedy Central, Discovery Family Channel, E! And James, to your second question, so well see how this, how the OEMs navigate kind of the integration of CarPlay and Android Auto. Our Q1 results were better than we expected, certainly based on where trends were heading in December or January, we had a really solid quarter with ad revenue down just 2%. Or is there anything different that you can talk to at this point? Mr. Stevens, you may now begin. Thank you. WebPolitical news and talk from all sides with Julie Mason, Michael Smerconish, Dan Abrams, Laura Coates, and more. The SiriusXM segment delivered $1.7 billion in revenue, which was down 2%, principally due to lower OEM paid promotional trial revenue reflected in our ARPU of $15.29 and declining subscriber revenue at Connected Vehicle, partially offset by a weighted average subscriber base that was up 1% year over year. We will also begin to see 360L capable vehicles and our used car trial starts as well. Thank you. Delete Presets on Sirius Radio
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