NEW YORK (AP) — Sirius XM topped revenue expectations for the first quarter and subscriptions grew, though earnings declined 24 percent due to a major share repurchase.
The company is repurchasing 93 million shares from Liberty Media for $340 million after it abandoned its bid to acquire the portion of Sirius it did not yet own. Sirius said it would restart its stock buyback program after Liberty's withdrawal.
The satellite radio company earned $94 million, or 2 cents per share, in the first three months of the year. That's down from $123.4 million, also 2 cents per share, in the same period a year earlier, but in line with analyst expectations.
The company had fewer outstanding shares in the latest quarter because of the stock buybacks.
Revenue rose 11 percent to $997.7 million, topping Wall Street projections of $897.4 million, according to a poll by FactSet.
Sirius XM Holdings Inc. added 266,799 net subscribers during the quarter, the majority of them 'self-pay' additions. That is key because those subscribers are more likely to stick around, making them more valuable. The company reached 25.8 million subscribers by the end of March.
Sirius reaffirmed its full-year outlook of $4 billion. Analysts are expecting $3.8 billion.
Shares of the New York company climbed 3 cents to $3.14 in morning trading. .