SiriusXM Still Feeling Pain of Sluggish Car Sales

A Q3 rate hike helped push SiriusXM's average revenue per user in Q1 up 9% year on year to $15.53, said management on an earnings call Thursday. Quarterly revenue grew 6% to $1.7 billion, despite impact from lower auto sales due to supply chain disruptions. SiriusXM self-pay subscribers slipped by 25,000 and paid promotional subscribers fell 54,000, said the company. Net additions in the quarter “were impacted by the lower auto sales we began to see in the second half of last year as supply constraints became more pronounced,” said CEO Jennifer Witz. “These conditions have not yet eased.” New car and estimated used car penetration rates “grew modestly” to 83% and 52%; the SiriusXM-enabled fleet numbers nearly 146 million vehicles, she said. Growth in digital subscriptions, the company’s fastest growing segment, was offset by declines in traditional in-car subs, said Witz.