SiriusXM Increases Quarterly Cash Dividend by 50%

Rhea-AI Summary

SiriusXM has declared a quarterly cash dividend of $0.0219615 per share, marking a 50% increase over the previous quarter. The dividend is payable on November 29, 2021 to stockholders of record by November 5, 2021. This increase reflects the company’s confidence in generating significant free cash flow. Additionally, SiriusXM continues to aggressively invest in growth initiatives and has a total of $18 billion authorized for stock repurchases, aiming to maintain flexibility while returning capital to shareholders.

Positive

• 50% increase in quarterly cash dividend enhances shareholder income.
• Continued confidence in generating significant free cash flow.
• Aggressive investments in growth initiatives and acquisitions.

Negative

• None.

NEW YORK, Oct. 25, 2021 /PRNewswire/ -- SiriusXM today announced that its Board of Directors declared a quarterly cash dividend of $0.0219615 per share of common stock, reflecting an increase of 50% over the previous quarter's dividend.  This regular quarterly dividend is payable in cash on November 29, 2021 to stockholders of record at the close of business on November 5, 2021.

"The substantial 50% increase in our regular quarterly dividend reflects our continued confidence in SiriusXM's ability to generate significant free cash flow in the coming years.  This increase is aimed at bringing our dividend yield more in-line with the broader market and sector comparables," said Sean Sullivan, Chief Financial Officer, SiriusXM. 

"We also intend to continue to invest aggressively in our growth initiatives, including pursuing acquisitions when attractive opportunities arise.  We plan to maintain financial and strategic flexibility by continuing to return capital to our stockholders at levels that reflect our annual free cash flow generation and any incremental borrowing capacity that may arise from managing leverage to be roughly consistent with historical levels," added Sullivan. 

SiriusXM first initiated a regular quarterly dividend in November 2016 at $0.01 per share per quarter, and this marks the fifth year in a row the company has increased this dividend, with the first four years seeing a 10% annual increase.

As a reminder, SiriusXM announced on July 19, 2021 that its Board of Directors had approved an additional $2 billion of common stock repurchases, taking the Company's total authorization to $18 billion since the inception of the program in 2013.  As of July 23, 2021, the company had approximately $2.7 billion of remaining authorization.  Shares of common stock may be purchased from time to time on the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in privately negotiated transactions, including in accelerated stock repurchase transactions and transactions with Liberty Media and its affiliates, or otherwise.  The Company will fund the repurchases through cash on hand, future cash flow from operations, and future borrowings.

The announcement of the extension of the repurchase program reflected the Board's desire to continue to return capital to stockholders and its confidence in the long-term growth prospects of the Company's business. SiriusXM retains sufficient capital capacity to continue making long-term investments in its programming, research and development initiatives and overall operations, as well as to pursue strategic opportunities that may arise.

About SiriusXM

Sirius XM Holdings Inc. (NASDAQ: SIRI) is the leading audio entertainment company in North America, and the premier programmer and platform for subscription and digital advertising-supported audio products. SiriusXM's platforms collectively reach approximately 150 million listeners, the largest digital audio audience across paid and free tiers in North America, and deliver music, sports, talk, news, comedy, entertainment and podcasts. Pandora, a subsidiary of SiriusXM, is the largest ad-supported audio entertainment streaming service in the U.S. SiriusXM's subsidiaries Stitcher, Simplecast and AdsWizz make it a leader in podcast hosting, production, distribution, analytics and monetization. The Company's advertising sales organization, which operates as SXM Media, leverages its scale, cross-platform sales organization and ad tech capabilities to deliver results for audio creators and advertisers. SiriusXM, through Sirius XM Canada Holdings, Inc., also offers satellite radio and audio entertainment in Canada. In addition to its audio entertainment businesses, SiriusXM offers connected vehicle services to automakers. For more about SiriusXM, please go to: www.siriusxm.com.

This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:  we face substantial competition and that competition is likely to increase over time; our efforts to attract and retain subscribers and listeners, or convert listeners into subscribers, which may not be successful, and may adversely affect our business; we engage in extensive marketing efforts and the continued effectiveness of those efforts is an important part of our business; we rely on third parties for the operation of our business, and the failure of third parties to perform could adversely affect our business; we may not realize the benefits of acquisitions and other strategic investments and initiatives; a substantial number of our Sirius XM subscribers periodically cancel their subscriptions and we cannot predict how successful we will be at retaining customers; our ability to profitably attract and retain subscribers to our Sirius XM service as our marketing efforts reach more price-sensitive consumers is uncertain; our business depends in large part on the auto industry; vehicle production and sales are dependent on may factors, including the availability of consumer credit, general economic conditions, consumer confidence, fuel costs and component supply shortages; the impact of COVID-19, including its variant strains, on our business; failure of our satellite would significantly damage our business; our Sirius XM service may experience harmful interference from wireless operations; our Pandora ad-supported business has suffered a substantial and consistent loss of monthly active users, which may adversely affect our Pandora business; our failure to convince advertisers of the benefits of our Pandora ad-supported service could harm our business; if we are unable to maintain revenue growth from our advertising products, particularly in mobile advertising, our results of operations will be adversely affected; changes in mobile operating systems and browsers may hinder our ability to sell advertising and market our services; if we fail to accurately predict and play music, comedy or other content that our Pandora listeners enjoy, we may fail to retain existing and attract new listeners; privacy and data security laws and regulations may hinder our ability to market our services, sell advertising and impose legal liabilities; consumer protection laws and our failure to comply with them could damage our business; failure to comply with FCC requirements could damage our business; if we fail to protect the security of personal information about our customers, we could be subject to costly government enforcement actions and private litigation and our reputation could suffer; interruption or failure of our information technology and communications systems could impair the delivery of our service and harm our business; the market for music rights is changing and is subject to significant uncertainties; our Pandora services depend upon maintaining complex licenses with copyright owners, and these licenses contain onerous terms; the rates we must pay for "mechanical rights" to use musical works on our Pandora service have increased substantially and these new rates may adversely affect our business; our use of pre-1972 sound recordings on our Pandora service could result in additional costs; failure to protect our intellectual property or actions by third parties to enforce their intellectual property rights could substantially harm our business and operating results; some of our services and technologies may use "open source" software, which may restrict how we use or distribute our services or require that we release the source code subject to those licenses; rapid technological and industry changes and new entrants could adversely impact our services; we have a significant amount of indebtedness, and our debt contains certain covenants that restrict our operations; we are a "controlled company" within the meaning of the NASDAQ listing rules and, as a result, qualify for, and rely on, exemptions from certain corporate governance requirements; while we currently pay a quarterly cash dividend to holders of our common stock, we may change our dividend policy at any time; and our principal stockholder has significant influence, including over actions requiring stockholder approval, and its interests may differ from the interests of other holders of our common stock; if we are unable to attract and retain qualified personnel, our business could be harmed; our facilities could be damaged by natural catastrophes or terrorist activities; the unfavorable outcome of pending or future litigation could have an adverse impact on our operations and financial condition; we may be exposed to liabilities that other entertainment service providers would not customarily be subject to; and our business and prospects depend on the strength of our brands. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2020, which is filed with the Securities and Exchange Commission (the "SEC") and available at the SEC's Internet site (http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Source: SiriusXM

Investor contact:
Hooper Stevens
212-901-6718
hooper.stevens@siriusxm.com

Media contact:
Patrick Reilly
212-901-6646
patrick.reilly@siriusxm.com

View original content:https://www.prnewswire.com/news-releases/siriusxm-increases-quarterly-cash-dividend-by-50-301407922.html

SOURCE Sirius XM Holdings Inc.

FAQ

What is SiriusXM's new quarterly dividend amount?

SiriusXM's new quarterly dividend is $0.0219615 per share.

When is the payment date for SiriusXM's dividend?

The dividend payment date is November 29, 2021.

What was the percentage increase in SiriusXM's dividend?

The dividend increased by 50% compared to the previous quarter.

What is the record date for SiriusXM's dividend?

The record date for the dividend is November 5, 2021.

How much has SiriusXM authorized for stock repurchases?

SiriusXM has authorized a total of $18 billion for stock repurchases.