SiriusXM Holdings Inc. (SIRI) is making waves in the market today, announcing its new chapter as an independent public entity. This follows the successful completion of its transaction with Liberty Media, and the company is taking the opportunity to solidify its future.
SiriusXM is staying true to its commitment to investors by reaffirming its full-year 2024 revenue and adjusted EBITDA guidance. They’re projecting a total revenue of approximately $8.75 billion, an adjusted EBITDA of around $2.7 billion, and a free cash flow of about $1.0 billion. This free cash flow guidance has been revised to account for closing costs, additional interest expenses, and historical cash outflows from Liberty Sirius XM Holdings Inc.
In a bold move aimed at boosting shareholder value, SiriusXM has also announced a $1.66 billion stock repurchase authorization. This initiative builds upon the previous buyback program and signifies the company’s confidence in its growth trajectory.
Jennifer Witz, CEO of SiriusXM, expressed the company’s strategic vision, stating, “Today SiriusXM embarks on a new phase in our journey as an independent public company, building on our leading position in audio entertainment.” This new phase sees a focus on three key objectives: enhancing subscriber value through content, technology, and pricing; expanding advertising offerings to attract new listeners and provide effective results for advertisers; and enhancing organizational efficiency to maintain strong financial performance.
The company also intends to maintain its recurring dividend, which, adjusted for the 1-for-10 change in the Liberty Media transaction exchange ratio, will be approximately 27 cents per quarter.
While SIRI shares are trading lower by 3.11% to $25.87 at last check Tuesday, the overall announcement signals SiriusXM’s commitment to its future success, focusing on growth and shareholder value.
