This Week in Sirius XM Radio

Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ: SIRI  )  moved higher on the week, inching up 2.4% to close at $3.36. The move was more robust than the Nasdaq's 1.9% gain. 

There was more going on beyond the share-price gyrations, though. Sirius XM also said its CFO will be a presenter at an investor conference, and it announced a new channel, while Pandora (NYSE: P  ) announced monthly metrics for the last time.  

Let's take a closer look.

Take the stage
There wasn't a lot of new Sirius XM-specific news out during the week, though the Jerry Lewis Town Hall is bound to turn heads. This weekend's commitment to broadcast key performances from the 2014 Governors Ball Music Festival is going to keep music fans close. However, things may be more interesting next week.

Sirius XM announced that CFO David Frear will make a presentation at the Morgan Stanley Leveraged Finance Conference come Thursday morning. The New Orleans conference will give Sirius XM yet another chance to reach out to investors, and given the theme of the event, it's a safe bet that the satellite-radio star will have plenty of insight as to its liquidity, its debt situation, and its recent financial moves. 

Prayer group
The Joel Osteen Channel will come to Sirius XM in the fall. The rock star among religious magnates is the senior pastor at America's largest Christian congregation. 

From an investing standpoint, it doesn't matter if you're a fan of Osteen. Sirius XM offers a wide array of content covering the gamut of opinions, and Osteen's a big draw. Check out the weekend crowds at his Lakewood Church. It's fair to say that many of them aren't interested in satellite radio, but that may change come autumn. 

Pandora's end of the line
Pandora saw decent year-over-year and modest month-over-month growth in May. It closed out the month with 77 million active listeners, up from 70.8 million a year earlier and 76 million in April. Pandora served up 1.73 billion hours of content during the month, too. That's a sharp 28% pop since May of last year, but it's just a meager uptick from the 1.7 billion hours in April. That sequential move looks even worse, considering that May has one more day than April. In other words, usage slipped on a per-day average.

The stock initially dipped on the metrics, but the market warmed up to the numbers. BMO Capital issued a note reiterating its bullish rating and giving the May metrics a positive spin.

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Comments from our Foolish Readers

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  • Report this Comment On June 07, 2014, at 1:55 PM, MUSCLE13 wrote:

    Frear already spoke at the Merrill Conference this past week. The audio archive is online at Sirius' investor site.

    Also when in the world are you going to start commenting on Free Cash Flow per share - the exact way Sirius is being valued by top Wall Street analysts right now and the entire reason for the stock buybacks.

  • Report this Comment On June 07, 2014, at 3:03 PM, Austin77478 wrote:

    Muscle, Frear is speaking again at New Orleans. Most investors in Sirius should know about this information.

  • Report this Comment On June 07, 2014, at 6:28 PM, MUSCLE13 wrote:

    Austin - Sirius just press released this week that Frear is speaking at the Morgan Stanley conference this coming week, Everybody already knows that. What Rick ignored is that Frear was interviewed by the top media analyst in the world, Jessica Reif Cohen this past week at the Merrill conference in England. One of the most informative interviews of any Sirius exec. I have ever heard.

    And when do we ever read about FCF per share? The most important valuation metric on the street right now.

  • Report this Comment On June 07, 2014, at 10:13 PM, zukerman wrote:

    What ever will the average writer do without the monthly fodder suggesting popularity will eventually equal success from this business model? Those that own the majority of the shares of this company still have options, albeit fewer by the day. Given that most investors of this scale expect that only 50% of these IPO's will ever make money, an exit plan is already in place. Damage control would involve keeping numbers close to the vest that would tend to show they are no longer growing. Without cash Pandora has few options but to dilute shareholders in some way.

  • Report this Comment On June 08, 2014, at 6:40 AM, speedbirdd wrote:

    sucker you into this link to be one of them, and to see Apple's newest smart gizmo, just click here!

    1 hr long add that drones on about how great their goofy leader is and never revels the company that is going to make you rich by making guts for iWatch i will never again read there dribble. the Fools will tell you for about 300 bucks the answer. disgusting

  • Report this Comment On June 08, 2014, at 8:16 AM, sirifair6 wrote:

    Rick,

    Pandora's monthly listening hours have become irrelevant. Their growth in hours has adverse effect on income. The more hours they get the more money they lose. This is how their business model works. I am confident that the fate of other streamers with a similar business model is the same no matter how much they advertise their growth. This is growth into nowhere.

    In contrast, siri's finances keep improving dramatically even with much fewer than expected new subscribers in Q1. Sirius XM passed the breakeven point millions of customers before and now each and every new customer is virtually pure fcf. Those who know siri should care little about their profitability on paper and should zero in on their FCF that is becoming spectacular with this year's margin over 25%. And this is with additional borrowing and interest.

    I love the fact that the company, unlike over crowded streamers, knows exactly what to do and how to make money. I believe that what we see now is just the beginning of much more impressive growth. The next 12 months may be very exciting with news no only about new programming that we are used to but with major new steps in the connectivity market and significant progress in the used car market. Mark my word!!!

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