SiriusXM's Next Chapter: Charts Independent Path With Buybacks & Streamlined Capital Structure

SiriusXM Holdings Inc. (SIRI) shares are trading lower on Tuesday.

In a press release, the company reiterated its full-year 2024 revenue and adjusted EBITDA guidance, and launched a $1.66 billion stock repurchase authorization.

The company said it has embarked on a new phase as an independent public entity, featuring a streamlined capital structure and a strategy for ongoing success after completing its transaction with Liberty Media.

“Today SiriusXM embarks on a new phase in our journey as an independent public company, building on our leading position in audio entertainment,” said Jennifer Witz, Chief Executive Officer of SiriusXM.

SiriusXM said it intends to maintain its recurring dividend, which, adjusted for the 1-for-10 change in the Liberty Media transaction exchange ratio, will be approximately 27 cents per quarter.

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Following the completion of the Liberty Media transaction, SiriusXM’s Board approved a $1.166 billion common stock repurchase program. This new repurchase program continues the stock buyback initiative from the previous SiriusXM.

The CEO emphasized the company’s commitment to three main objectives: improving subscriber value through content, technology, and pricing; expanding advertising offerings to attract new listeners and provide effective results for advertisers; and enhancing organizational efficiency to maintain strong financial performance.

The company’s financial guidance for 2024 includes total revenue of approximately $8.75 billion (estimate: $8.749 billion), adjusted EBITDA of around $2.7 billion, and free cash flow of about $1.0 billion.

The revised free cash flow guidance, reflecting a $200 million adjustment, accounts for approximately $70 million in closing costs and additional interest expenses, as well as roughly $130 million in historical cash outflows from Liberty Sirius XM Holdings Inc. prior to the transaction’s completion.

Price Action: SIRI shares are trading lower by 3.11% to $25.87 at last check Tuesday.

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