Why? The merger took too long (thanks to the dopey FCC), the car market — where Sirius gets most of its new customers — wouldn’t come back quickly enough, and free streaming radio apps on iPhones would quickly replace satellite radio as the hot new way to listen to music.
Not so fast!
Sirius XM is actually signing up a lot of new customers, and while it isn’t growing as fast as it used to, it’s actually growing. And shares are up 6% on the news.
- Sirius said it added 583,000 net new subscribers during Q2, compared to a net decline of 186,000 in Q2 2009.
- Sirius announced its third guidance increase this year; now expects to finish 2010 with 1.1 million net subscriber additions. (So it expects a slowdown in the second half.)
- In the first six months of 2010, it has added 755,000 net subs, compared to a net loss of 590,000 during the first half of 2010.
- Sirius finished June with a record 19.5 million subs.
- The conversion rate it gets from people who buy new cars with free trial subscriptions also increased. It now gets 46.7% of those people to sign up for paid subscriptions, up from 44.3% a year ago.
Sirius will announce full Q2 results in August.
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