Satellite radio company, SIRIUS XM Radio Inc. (SIRI), has crossed the 25 million subscriber base with a record net addition of 715,000 customers for the second quarter of 2013. While the company’s previous best was 622,042 customer additions in the second quarter of fiscal 2012.
SIRIUS XM achieved a 15% growth rate in net subscriber addition year over year while sequentially it increased by a whopping 58%. Such robust growth in subscribers is mainly attributed to increased automobile sales and the continuous launch of innovative products.
SIRIUS XM gained approximately 1.17 million subscribers in the first half of fiscal 2013 with an average of 583,945 customers per quarter as compared with 1.03 million subscribers added during the first half of fiscal 2012 with an average of 513,319 per quarter.
SIRIUS XM is continuously forming strategic partnerships with premium automobile companies. Last month, SIRIUS XM started offering the new Sync AppLink technology for Ford Motor Co.’s (F) vehicles. The technology will allow users to use voice command to listen to their favorite channels while driving.
The new software is also available on Apple Inc.’s (AAPL) devices and Google Inc.’s (GOOG) Android-based handsets. Hence, customers can access SIRIUS XM programs from these devices without even turning on the satellite radio hardware.
A solid product portfolio coupled with strong business relationships with the original equipment manufacturers has helped the company to raise its 2013 fiscal outlook on net subscriber addition by 100,000 to 1.5 million. Meanwhile, the company has already achieved 78% of its target and is expected to easily surpass the outlook by the end of the third quarter of 2013.
Currently, SIRIUS XM has a Zacks Rank #3 (Hold).
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