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Satellite radio company Sirius XM Canada posts increase in Q1 profit to $8M

TORONTO – Sirius XM Canada Holdings Inc. (TSX:XSR) has reported a big increase in fiscal 2015 first-quarter earnings as increased revenues and lower financing and depreciation and amortization costs more than offset higheer operating expenses and an increase in income taxes.

The parent of satellite radio company Sirius XM Canada Inc. says net earnings were $8 million or six cents per share in the quarter ended Nov. 30, up 67 per cent from $4.8 million or four cents in the same prior-year period.

Revenue rose 3.3 per cent to just under $79 million from $76.4 million.

Commenting on the results in the company’s earnings release, president and CEO Mark Redmond said Monday that management believes the company is positioned for continued growth in fiscal 2015.

“We are confident we can deliver year-over-year subscriber growth and increase self-pay ARPU (average revenue per user),” he said, adding that “we are also gaining further traction in the pre-owned vehicle market.”

Sirius XM Canada, with more than 2.6 million subscribers, broadcasts more than 120 satellite radio channels featuring sports, news, talk, entertainment and commercial-free music.