Warren Buffett Buys 2.3M SiriusXM Shares Worth £43.37M as Company Reaffirms 2025 Guidance
According to a 2nd February Form 4 filing with the US Securities and Exchange Commission, Berkshire Hathaway purchased over 2.3 million shares of SiriusXM Holdings Inc. (NASDAQ:SIRI) worth £43.37 million.
Buffett’s company now owns over 119.77 million shares of SIRI, worth over £2.25 billion. Berkshire Hathaway’s latest SIRI purchase was completed in four trades starting 30th January, the same day the radio satellite company posted its Q4 results.
SIRI is a leading audio entertainment firm primarily generating revenues from its subscription entertainment service, SiriusXM, and premium music streaming services platform, Pandora. The company claims to have a combined monthly audience of almost 160 million listeners. SiriusXM offers its 33 million subscribers diverse content, including news, exclusive interviews, live sports analysts, original shows, and on-demand podcasts. Meanwhile, Pandora is SIRI’s audio streaming services platform, used by over 5.8 million self-pay subscribers.
SIRI Q4 Revenues Reach £1.76B As Company Focuses On Operational Efficiency
SiriusXM’s Q4 2024 revenue was £1.76 billion. Although its full-year 2024 revenues reached £7 billion, the company incurred a net loss of £1.67 billion.
The company said the net loss reflected a non-cash impairment charge of almost £2.7 billion in Q3 due to an “assessment of the fair value of the company’s goodwill based on a sustained lower share price as SiriusXM’s share price converged” with Liberty Media Corporation’s (NASDAQ:LSXMA) tracking stocks.
Management clarified that the non-cash charge doesn’t impact the company’s cash flow, liquidity, or operations.
SIRI management also attributed the lower 2024 free cash flow of £816.86 million to costs associated with Liberty Media transactions, higher capex, and increased cash taxes. SiriusXM Holdings’ merger with Liberty Media offers a simplified ownership structure and better trading liquidity.
SIRI Reaffirms 2025 Guidance, Focuses On Returning Value To Shareholders
SIRI reiterated its full-year 2025 free cash flow guidance of £925.51 million. The company also reaffirmed its £6.84 billion revenue guidance for 2025.
In Q4, the company distributed £74.04 million via dividends and initiated share buybacks late in the year, completing £14.46 million of repurchases in December and January.
In 2024, SiriusXM returned £321.91 million in dividends to shareholders, including payments to the former parent company. As of now, the company will prioritise strategic capital allocation and aim for a long-term leverage ratio in the low to mid 3’s range.
Furthermore, SIRI has a positive outlook on future opportunities in podcasting and advertising businesses. It aims to achieve £160.95 million in annual savings by the end of 2025.
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