SiriusXM Kicks off New Phase as an Independent Public Company
SiriusXM (NASDAQ: SIRI) has entered a new phase as an independent public company following its transaction with Liberty Media. The company reaffirmed its 2024 revenue and adjusted EBITDA guidance while updating free cash flow guidance to approximately $1.0 billion, reflecting a $200 million impact from transaction-related costs. SiriusXM plans to continue its quarterly dividend of about $0.27 per share and has authorized a $1.166 billion stock repurchase program.
The company aims to enhance subscriber value, grow advertising offerings, and drive efficiency. It's evaluating potential non-cash goodwill and intangible asset impairments related to the Liberty Media transaction. Post-transaction, SiriusXM has about 339.1 million shares outstanding, with former Liberty SiriusXM stockholders owning 81% and former SiriusXM minority stockholders owning 19%.
SiriusXM (NASDAQ: SIRI) è entrata in una nuova fase come azienda pubblica indipendente a seguito della sua transazione con Liberty Media. L'azienda ha ribadito le sue previsioni di fatturato e EBITDA rettificato per il 2024, aggiornando le previsioni di flusso di cassa libero a circa 1,0 miliardi di dollari, riflettendo un impatto di 200 milioni di dollari dovuto ai costi legati alla transazione. SiriusXM prevede di mantenere il suo dividendo trimestrale di circa 0,27 dollari per azione e ha autorizzato un programma di riacquisto di azioni di 1,166 miliardi di dollari.
L'azienda punta a migliorare il valore per gli abbonati, espandere le offerte pubblicitarie e aumentare l'efficienza. sta valutando potenziali deprezzamenti dei beni immateriali e dell'avviamento non cash relativi alla transazione con Liberty Media. Dopo la transazione, SiriusXM ha circa 339,1 milioni di azioni in circolazione, con i precedenti azionisti di Liberty SiriusXM che possiedono l'81% e i precedenti azionisti minoritari di SiriusXM che possiedono il 19%.
SiriusXM (NASDAQ: SIRI) ha entrado en una nueva fase como empresa pública independiente tras su transacción con Liberty Media. La compañía reafirmó su guía de ingresos y EBITDA ajustado para 2024, mientras actualizó la guía de flujo de caja libre a aproximadamente 1.0 mil millones de dólares, reflejando un impacto de 200 millones de dólares por costos relacionados con la transacción. SiriusXM planea continuar con su dividendo trimestral de alrededor de 0.27 dólares por acción y ha autorizado un programa de recompra de acciones de 1.166 mil millones de dólares.
La empresa tiene como objetivo mejorar el valor para los suscriptores, expandir las ofertas publicitarias y aumentar la eficiencia. Está evaluando posibles deterioros de activos intangibles y de goodwill no monetario relacionados con la transacción de Liberty Media. Después de la transacción, SiriusXM tiene alrededor de 339.1 millones de acciones en circulación, con los antiguos accionistas de Liberty SiriusXM poseyendo el 81% y los antiguos accionistas minoritarios de SiriusXM poseyendo el 19%.
SiriusXM (NASDAQ: SIRI)는 Liberty Media와의 거래 이후 독립적인 상장 기업으로 새로운 단계에 들어섰습니다. 회사는 2024년 수익 및 조정된 EBITDA 가이드를 재확인하고, 거래 관련 비용으로부터 2억 달러의 영향을 반영하여 자유 현금 흐름 가이드를 약 10억 달러로 업데이트했습니다. SiriusXM은 주당 약 0.27달러의 분기 배당금을 계속 지급할 계획이며, 11억 6천6백만 달러 규모의 자사주 매입 프로그램을 승인했습니다.
회사는 구독자 가치를 향상시키고, 광고 제안을 확대하며, 효율성을 높이는 것을 목표로 하고 있습니다. Liberty Media 거래와 관련된 무형 자산 및 영업권의 비화폐적 손상에 대한 평가를 진행하고 있습니다. 거래 후 SiriusXM은 약 3억 3천9백 11만 주의 유통 주식을 보유하고 있으며, 이전 Liberty SiriusXM 주주가 81%, 이전 SiriusXM 소액 주주가 19%를 소유하고 있습니다.
SiriusXM (NASDAQ: SIRI) a entamé une nouvelle phase en tant qu’entreprise publique indépendante suite à sa transaction avec Liberty Media. La société a réaffirmé ses prévisions de revenus et d'EBITDA ajusté pour 2024, tout en mettant à jour ses prévisions de flux de trésorerie disponibles à environ 1,0 milliard de dollars, reflétant un impact de 200 millions de dollars dû aux coûts liés à la transaction. SiriusXM prévoit de continuer son dividende trimestriel d'environ 0,27 dollar par action et a autorisé un programme de rachat d'actions de 1,166 milliard de dollars.
La société vise à améliorer la valeur pour ses abonnés, à développer ses offres publicitaires et à accroître l'efficacité. Elle évalue les éventuelles amortissements non monétaires de goodwill et d'actifs incorporels liés à la transaction avec Liberty Media. Après la transaction, SiriusXM dispose d'environ 339,1 millions d'actions en circulation, les anciens actionnaires de Liberty SiriusXM possédant 81 % et les anciens actionnaires minoritaires de SiriusXM 19 %.
SiriusXM (NASDAQ: SIRI) hat nach der Transaktion mit Liberty Media eine neue Phase als unabhängiges börsennotiertes Unternehmen betreten. Das Unternehmen bestätigte seine Umsatz- und bereinigte EBITDA-Prognose für 2024 und aktualisierte die Prognose für den freien Cashflow auf etwa 1,0 Milliarden Dollar, was einen Einfluss von 200 Millionen Dollar aufgrund von transaktionsbezogenen Kosten widerspiegelt. SiriusXM plant, die vierteljährliche Dividende von etwa 0,27 Dollar pro Aktie beizubehalten und hat ein Aktienrückkaufprogramm von 1,166 Milliarden Dollar genehmigt.
Das Unternehmen zielt darauf ab, den Wert für die Abonnenten zu steigern, die Werbeangebote auszubauen und die Effizienz zu steigern. Es wird die möglichen nicht zahlungswirksamen Wertminderungen von goodwill und immateriellen Vermögenswerten im Zusammenhang mit der Transaktion mit Liberty Media bewerten. Nach der Transaktion hat SiriusXM etwa 339,1 Millionen ausgegebene Aktien, wobei die früheren Aktionäre von Liberty SiriusXM 81 % und die früheren Minderheitsaktionäre von SiriusXM 19 % besitzen.
- Reaffirmed 2024 revenue guidance of approximately $8.75 billion
- Maintained adjusted EBITDA guidance of approximately $2.7 billion
- Authorized $1.166 billion stock repurchase program
- Continuing quarterly dividend of about $0.27 per share
- Transaction resulted in net reduction of approximately 12% of outstanding shares
- Updated free cash flow guidance reduced by $200 million due to transaction-related costs
- Potential non-cash goodwill and intangible asset impairment charges expected in Q3 2024
- Increased debt levels from Liberty Media transaction
SiriusXM's transition to an independent public company marks a significant shift in its corporate structure. The company's updated guidance, including
The
Investors should monitor the potential non-cash goodwill impairment charge, which could impact reported earnings but not cash flows or operations.
SiriusXM's strategy focuses on three key areas: enhancing subscriber value, growing advertising offerings and driving efficiency. This approach is crucial in the competitive audio entertainment landscape. The company's strong position in in-vehicle entertainment and expansion into digital platforms positions it well for future growth.
The simplified capital structure post-Liberty Media transaction could improve decision-making agility. However, the
The company's ability to maintain its subscriber base while expanding digital advertising will be critical for long-term success in the evolving media landscape.
With Simplified Capital Structure and a Clear Path Forward,
SiriusXM Updates Free Cash Flow Guidance to Reflect the Impact of the Closing of the Liberty Media Transaction
Company Confirms Quarterly Dividend and Announces
"Today SiriusXM embarks on a new phase in our journey as an independent public company, building on our leading position in audio entertainment," said Jennifer Witz, Chief Executive Officer of SiriusXM. "We've created a strong and profitable business, anchored by a subscription service that fosters deep and loyal connections with our listeners and a growing digital audio advertising platform which extends our reach to fans around the world, and we are excited about the future as we look to expand and strengthen both platforms."
"As we look ahead, we remain committed to three key objectives: enhancing subscriber value with a focus on content, technology and pricing; growing our advertising offerings to both engage new listeners and deliver effective results for advertisers; and driving efficiency across the organization to continue our strong track record of financial performance. We look forward to building upon SiriusXM's twenty-year history as the audio platform of choice for millions of North Americans in their vehicles, at home, and on the go, with the goal of creating long-term value for our stockholders."
Financial Update
SiriusXM reiterated its full-year 2024 revenue and adjusted EBITDA guidance. As the company has stated in past earnings releases, the company planned to update its free cash flow guidance for transaction impacts. The company estimates these costs to be approximately
"As we enter our next phase as an independent company, we expect SiriusXM to continue delivering solid, profitable results," said Thomas Barry, Chief Financial Officer of SiriusXM. "After completing the transaction, which had the effect of reducing our outstanding common stock by approximately
The company's 2024 financial guidance is as follows:
- Total revenue of approximately
$8.75 billion - Adjusted EBITDA of approximately
$2.7 billion - Free cash flow of approximately
$1.0 billion
The company's
Adjusted EBITDA and free cash flow are non-GAAP financial measures. The company has not provided a reconciliation of adjusted EBITDA to projected net income (loss) or free cash flow to net cash provided by operating activities because full-year net income (loss) and net cash provided by operating activities will include special items that have not occurred and are difficult to predict with reasonable certainty prior to year-end. Due to this uncertainty, the company cannot reconcile adjusted EBITDA and free cash flow to their comparable GAAP measures without unreasonable effort.
Capital Return Program
SiriusXM plans to continue its recurring dividend, which adjusted for the 1 for 10 change in the Liberty Media transaction exchange ratio would be approximately
Upon completion of the Liberty Media transaction, the Board of SiriusXM authorized a
This newly authorized amount represents the amount that remained available under former SiriusXM's
The timing and amount of any shares repurchased will be determined based on SiriusXM's evaluation of market conditions and other factors and the program may be discontinued or suspended at any time. Repurchases will be made in compliance with all SEC rules and other legal requirements and may be made in part under a Rule 10b5-1 plan, which permits stock repurchases when SiriusXM might otherwise be precluded from doing so.
Target Leverage Ratio
The company also reiterated its long-term target leverage ratio of mid-to-low three times adjusted EBITDA. After appropriate investments in the business and its continuing regular dividend, SiriusXM expects to focus excess cash flows on debt reduction until it reaches this long-term leverage target while continuing to be mindful of strategic investment and capital return opportunities.
SiriusXM Evaluating Non-Cash Goodwill and other Intangible Assets
SiriusXM also announced that, with the completion of the Liberty Media transaction, the company will perform an evaluation of its goodwill and other intangible assets, particularly the goodwill and other intangible assets attributed from the Liberty Media transaction. The company has regularly assessed any asset impairments or impairment indicators of its legacy assets, and, as a result, any such post-transaction charges would primarily relate to goodwill and intangible assets associated with the Liberty Media transaction. The company expects to complete its analysis of this goodwill and the other intangible assets in the third quarter of 2024.
Such impairment charge, if any, would represent a non-cash charge to earnings, and it would not affect the company's liquidity, cash flows from operating activities or debt covenants, or have any impact on future operations.
Transaction Closing Details
On September 9, 2024, at 4:05 p.m.,
Following the Split-Off, on September 9, 2024 at 6:00 p.m.,
As a result of the Transactions, Sirius XM Holdings Inc. is an independent, publicly traded company. Sirius XM Holdings Inc. common stock begins trading on Nasdaq under the ticker symbol "SIRI" on September 10, 2024.
Additional information regarding the Transactions is available in a Current Report on Form 8-K that the company filed yesterday with the
1 for 10 Adjustment
Upon consummation of the Liberty Media transaction, each share of common stock of Sirius XM issued and outstanding immediately prior to closing and held by the former minority stockholders of the company was converted into one-tenth (0.1) of a share of SiriusXM common stock. As a result, a holder of 100 shares of SiriusXM common stock, which closed on the Nasdaq Global Select Market at
Share Reduction
Following the closing of the Liberty Media transaction, Sirius XM had approximately 339.1 million shares of common stock outstanding. The former holders of Liberty SiriusXM common stock own approximately
The Liberty Media transaction resulted in the net reduction of approximately
About Sirius XM Holdings Inc.
SiriusXM is the leading audio entertainment company in
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: Risks Relating to our Business and Operations: We face substantial competition and that competition is likely to increase over time; if our efforts to attract and retain subscribers and listeners, or convert listeners into subscribers, are not successful, our business will be adversely affected; 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 are migrating our billing system and payment processing function to a new service provider; failure to successfully monetize and generate revenues from podcasts and other non-music content could adversely affect our business, operating results, and financial condition; we may not realize the benefits of acquisitions or other strategic investments and initiatives; the impact of economic conditions may adversely affect our business, operating results, and financial condition; and we may be adversely affected by the war in
Source: SiriusXM
Investor contacts:
Hooper Stevens
212-901-6718
hooper.stevens@siriusxm.com
Natalie Candela
212-901-6672
natalie.candela@siriusxm.com
Media Contact:
Maggie Mitchell
617-797-1443
maggie.mitchell@siriusxm.com
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SOURCE Sirius XM Holdings Inc.
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