How Can Sirius XM Holdings Inc. (SIRI) Be More Important?

Posted by Michael Korte January 5, 2015 0 Comment 1631 views

A company is only relevant to investors if it can make them money. Does Sirius XM Holdings Inc. (NASDAQ:SIRI) fit the bill? Yes, it does, but a closer look at the company is important now in the new year 2015.

Sirius XM Holdings Inc. (NASDAQ:SIRI) has been returning money to shareholders through buybacks. According to some analysts, the buybacks are helping the company to undo past dilutions of its stock and strengthens remain shares. As such, the company can do itself good by continuing the buybacks. Additionally, the company continues to tap more subscribers. As such, Sirius XM Holdings Inc. (NASDAQ:SIRI) is expected to continue growing its revenue in the future. The company is also trying to be good to customers as a way to preserve its good reputation, which is good for its business.

Customer settlement

Sirius XM Holdings Inc. (NASDAQ:SIRI) recently agreed to pay 3.8 million to customers that were adversely impacted by its billing and advertising practices. Sirius XM customers in 46 states and Washington D.C. can apply for refunds in connection to the billing and advertising issue.

Although the settlement might take away some money from Sirius XM Holdings Inc. (NASDAQ:SIRI), it helps the company to remain a friendly corporation, which is a favorable profile in the competitive media industry.

Sirius XM Holdings Inc. (NASDAQ:SIRI)’s revenue has in the past few years been moving in the desired direction. Although 2014 revenue numbers are not yet out, a growth of 9% is expected.  The first three quarters of 2014 saw revenue up 11% in the first quarter and 10% in the second and the third. In the current year, revenue is expected to increase 8%.

Improving revenue

Still, the company has opportunities to increase revenue through attraction of new subscribers, charging higher advertisement rates and enriching the platform to charge for extra services.

Sirius XM Holdings Inc. (NASDAQ:SIRI) has returned $2.2 billion to shareholders in the form of buybacks. According to some analysts, buying back shares could end up making the company a buyout candidate for cable companies looking for growth opportunities in the satellite radio space.

About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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