by Christopher Freeburn | July 9, 2013 10:20 am
Rising auto sales are boosting subscriber numbers for Sirius XM Radio (SIRI).
On Tuesday, the satellite radio service provider said it added 715,000 new customers during the second quarter. The number of people paying for its service rose 15% over the prior year to 25 million subscribers, Reuters notes.
The increase in quarterly subscribers prompted the company to raise its outlook for new subscribers this year to 1.5 million, up 100,000 from prior estimates.
Many new cars feature radios equipped to receive satellite radio and most feature a trial period subscription. U.S. auto sales rose strongly in May.
Earlier this year, Liberty Media (NASDAQ:LMCAD) acquired control of Sirius XM Radio after the Federal Communications Commission (FCC) cleared the transfer of broadcasting licenses.
The news sent Sirius XM Radio shares up almost 2% in Tuesday morning trading.
Source URL: http://investorplace.com/2013/07/sirius-hits-25m-subscribers-raises-outlook/
Short URL: http://invstplc.com/1frpptJ