TORONTO - Sirius XM Canada Holdings Inc. (TSX: XSR), parent of satellite radio provider Sirius XM Canada Inc., has posted its first full-year net profit despite a 33 per cent drop in fourth-quarter earnings.
Toronto-based Sirius says net income in the quarter ended Aug. 31 slumped to $4.1 million from $6.1 million in the same 2012 period even as revenue grew 11.2 per cent to $75.7 million from $68.1 million.
But for the full year, the company report net profit of $12.2 million, or 10 cents per share, reversing a net loss of $4.2 million, or three cents per share, in 2012.
The holding company, which merged XM Canada and Sirius Canada Inc. in 2011, says net subscribers increased by 220,900 year over year to 2.4 million.
"2013 was Sirius XM Canada's second year as a combined entity. In all respects it was a successful year in which we met or exceeded the key operational and financial goals we set," president and CEO Mark Redmond said in a statement accompanying the results.
"At the core of our recent success has been our ability to grow our subscriber base. We've added more than 444,000 net total subscribers since the merger, and this in turn has driven our strong financial performance and enabled us in fiscal 2013 to begin to return capital to shareholders in the form of dividends."
Redmond said the company is "excited by the growth opportunities in front of us" and expects to grow is subscriber base through technological innovation that will launch new products and services.
"To deliver on these objectives, we will expand our footprint with the OEM (original equipment manufacturer) product lines; pursue opportunities in the pre-owned vehicle market (and) continue to give our customers more control over more content, which they can enjoy in more places," he said.
Sirius XM Canada broadcasts more than 120 satellite radio channels featuring premier sports, news, talk, entertainment and commercial-free music.
Content is available on a variety of devices including pre-installed and after-market radios in cars, trucks and boats, as well as smartphones and mobile devices, and consumer electronics products for homes and offices.