NEW YORK, 25 October 2021 / PRNewswire / – SiriusXM today announced that its board of directors has declared a quarterly cash dividend of $ 0.0219615 per common share, reflecting a 50% increase over the previous quarter’s dividend. This regular quarterly dividend is payable in cash on November 29, 2021 to shareholders of record at the close of business on November 5, 2021.
“The substantial 50% increase in our regular quarterly dividend reflects our continued confidence in SiriusXM’s ability to generate significant free cash flow in the years to come. This increase is intended to further align our performance with the broader market and industry comparables, “mentioned Sean Sullivan, CFO, SiriusXM.
“We also intend to continue to invest aggressively in our growth initiatives, including pursuing acquisitions when attractive opportunities arise. We plan to maintain financial and strategic flexibility by continuing to return capital to our shareholders at levels that reflect our annual generation of free cash flow and any additional borrowing capacity that may result from debt management is roughly in line with historical levels, ”Sullivan added.
SiriusXM first launched a regular quarterly dividend in november 2016 To $ 0.01 per share per quarter, and this is the fifth consecutive year that the company has increased this dividend, with the first four years seeing an annual increase of 10%.
As a reminder, SiriusXM announced the July 19, 2021 that its board of directors had approved a new $ 2 billion repurchases of ordinary shares, bringing the Company’s total authorization to $ 18 billion since the program was launched in 2013. July 23, 2021, the company had about $ 2.7 billion of the remaining authorization. Common shares may be purchased from time to time in the open market, in accordance with predefined trading plans meeting the requirements of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, in transactions traded in private, including through expedited transactions. share repurchase transactions and transactions with Liberty Media and its affiliates, or otherwise. The Company will fund the repurchases with cash, future cash flows from operations and future borrowings.
The announcement of the extension of the buyback program reflects the Board’s desire to continue returning capital to shareholders and its confidence in the long-term growth prospects of the Company’s activity. SiriusXM maintains sufficient capital capacity to continue to invest for the long term in its programming, research and development initiatives and global operations, as well as to pursue any strategic opportunities that may arise.
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the leading audio entertainment company in North America, and the premier programmer and platform for audio products supported by digital and subscription advertising. SiriusXM’s platforms collectively reach approximately 150 million listeners, the largest digital audio audience among paid and free tiers in North America, and stream music, sports, talk, news, comedy, entertainment, and podcasts. Pandora, a subsidiary of SiriusXM, is the largest ad-supported audio entertainment streaming service in the United States. SiriusXM’s subsidiaries, Stitcher, Simplecast and AdsWizz, make it a leader in the hosting, production, distribution, analysis and monetization of podcasts. The company’s advertising sales organization, which operates as SXM Media, leverages its scale, cross-platform sales organization, and ad technology capabilities to deliver results to audio creators and advertisers. SiriusXM, through Sirius XM Canada Holdings, Inc., also offers satellite radio and audio entertainment in Canada. In addition to its audio entertainment business, SiriusXM offers connected vehicle services to vehicle manufacturers. To learn more about SiriusXM, visit: www.siriusxm.com.
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding future financial and operational results, our plans, objectives, expectations and intentions. with respect to future operations, products and services; and other statements identified by words such as “will likely result”, “is expected”, “will continue”, “is planned”, “estimated”, “believe”, “intend”, “plan”, ” project ”,“ perspective ”or words with similar meaning. These forward-looking statements are based on the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.
The following factors, among others, could cause actual results and the timing of events to differ materially from anticipated results or other expectations expressed in forward-looking statements: we face significant competition and this competition is likely to intensify over time; our efforts to attract and retain subscribers and listeners, or convert listeners to subscribers, which may fail and may adversely affect our business; we engage in extensive marketing efforts and the continued effectiveness of these efforts is an important part of our business; we rely on third parties to operate our business, and the failure of these third parties could adversely affect our business; we may not realize the benefits of acquisitions and other strategic investments and initiatives; a significant number of our Sirius XM subscribers periodically cancel their subscriptions and we cannot predict how successful we will be in retaining our customers; our ability to profitably attract and retain subscribers to our Sirius XM service as our marketing efforts reach more price sensitive consumers is uncertain; our business is largely dependent on the automotive industry; vehicle production and sales depend on many factors, including the availability of consumer credit, general economic conditions, consumer confidence, fuel costs and component shortages; the impact of COVID-19, including its variant strains, on our business; a failure of our satellite would significantly affect our business; our Sirius XM service may be subject to harmful interference due to wireless operations; our advertising-supported Pandora business has experienced a substantial and consistent loss of monthly active users, which could negatively impact our Pandora business; our inability to convince advertisers of the benefits of our advertising-supported Pandora service could harm our business; if we are unable to sustain revenue growth from our advertising products, particularly in mobile advertising, our operating results will be affected; changes in operating systems and mobile browsers may hamper our ability to sell advertising and market our services; if we fail to accurately predict and deliver the music, comedy, or other content that our Pandora listeners enjoy, we may fail to retain existing listeners and attract new listeners; data privacy and security laws and regulations may hamper our ability to market our services, sell advertising and impose legal liabilities; consumer protection laws and our failure to comply with them could harm our business; failure to comply with FCC requirements could harm our business; if we fail to protect the security of our customers’ personal information, we could be subject to costly government enforcement actions and private litigation and our reputation could be damaged; the disruption or failure of our information and communications technology systems could interfere with the delivery of our service and adversely affect our business; the music rights market is evolving and is subject to significant uncertainties; our Pandora services depend on maintaining complex licenses with copyright holders, and those licenses contain onerous terms; the rates we have to pay for “mechanical rights” to use musical works on our Pandora service have increased significantly and these new rates may adversely affect our business; our use of pre-1972 sound recordings on our Pandora service may incur additional costs; failure to protect our intellectual property or the actions of third parties to enforce their intellectual property rights could materially adversely affect our business and results of operations; some of our services and technologies may use “open source” software, which may restrict how we use or distribute our services or require us to release source code subject to such licenses; rapid technological and industrial changes and new entrants could have a negative impact on our services; we have significant debt and our debt contains certain covenants that restrict our operations; we are a “controlled company” within the meaning of the NASDAQ Listing Rules and, therefore, we are entitled to and depend on exemptions from certain corporate governance requirements; while we currently pay a quarterly cash dividend to holders of our common shares, we may change our dividend policy at any time; and our major shareholder has significant influence, including over actions requiring shareholder approval, and their interests may differ from the interests of other holders of our common shares; if we are unable to attract and retain qualified personnel, our business could be compromised; our facilities could be damaged by natural disasters or terrorist activities; the unfavorable outcome of pending or future litigation could have a negative impact on our operations and financial condition; we may be exposed to liabilities that other entertainment service providers would not ordinarily be subject to; and our business and prospects depend on the strength of our brands. Additional factors that could cause our results to differ materially from those described in forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2020, which is filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (http://www.sec.gov). The information contained herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
SOURCE Sirius XM Holdings Inc.