SiriusXM Holdings reported on Tuesday that income rose 6% to $310 million within the second quarter, as job and workplace area cuts throughout the corporate helped buoy 1 / 4 of flat revenues.

Income for the quarter was $2.25 billion, successfully flat from a yr in the past, and the corporate raised its free money circulate objective to $1.15 billion. Adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA), which examines SiriusXM’s total monetary state minus any one-time occasions, rose 3% to $702 million.

Executives stated they have been cautiously optimistic that growing advert income and subscriber development within the second half of the yr will assist develop its top-line income to satisfy year-end objectives, and the years-long investments into rebuilding the corporate’s tech stack and buyer providing are nearing completion.

“We are pleased to report continued progress towards reaching our financial and operating goals for the year,” Chief Government Officer Jennifer Witz stated in a press release. “We made significant advancements this quarter in building our next generation platform and are excited to announce a preview event to come this fall.”

The corporate will host an unveiling presentation in New York within the coming months for its new app and product providing, which Witz stated goals to usher in extra youthful prospects. The corporate can even be reevaluating pricing and content material packages “with an expectation that we can better appeal to each of our target segments and in doing so, continue to grow our subscriber base, revenue and profitability,” Witz stated, discussing the corporate’s earnings on an investor name.

David Schulhof, a music trade veteran and CEO of the just lately launched MUSQ International Music Business ETF, of which SiriusXM is part, famous the corporate’s inventory has been hovering at its highest ranges in 18 months.

“The company is targeting a younger demographic now to compete with Spotify, Apple and Google’s music service,” Schulhof wrote in an e mail. “It will be interesting to watch their launch of a next-generation streaming app to attract younger and more diverse audiences. This could introduce a new source of revenue for Sirius XM as the music streaming market continues to grow at unprecedented levels.”

Sirius’s inventory was down roughly 3% after its outcomes on Tuesday at $4.93.

In March, SiriusXM minimize roughly 8% of the corporate’s workforce — or 475 employees — and has lowered its workplace actual property portfolio by greater than 30%. In June, it shut down its Stitcher podcast app emigrate it to the app.

Key SiriusXM monetary highlights:

  • SiriusXM’s second quarter income for 2023 was $2.25 billion, successfully flat in comparison with the prior yr. The corporate’s income goal stays $9 billion for the yr.
  • Earnings rose 6% to $310 million, or $0.08 per diluted share, from $292 million, or $0.07 per diluted share, in Q2 2022.
  • Adjusted EBITDA rose 3% to $702 million, on monitor to realize an annual goal of $2.75 billion.
  • Free money circulate fell to $323 million from $435 million final yr resulting from increased money taxes and satellite tv for pc capital bills.
  • Complete SiriusXM subscribers was flat at 34 million, with 7.5 million subscribers “in funnel” and self-pay month-to-month churn remaining low at 1.5%
  • SiriusXM income and gross profity held flat at $1.7 billion and $1 billion respectively.
  • The Pandora and Off-platform enterprise reported gross revenue fell 9% to $152 million, as subscriber income fell 2% and advert income fell 1%, whereas bills rose 2%.