Sirius XM Holdings Inc. (SIRI) Present at UBS Global Media and Communications Conference (Transcript)

Company and Industry Overview * Company: Sirius XM Holdings Inc. (NASDAQ: SIRI) * Industry: Media and Communications, specifically satellite radio and streaming services Key Points 1. Next-Generation Platform Launch * Launch: SiriusXM is launching a new next-generation platform, initially on streaming, with plans to roll it out across other products in the future. * Features: The platform includes a new streaming-only lower price point of $9.99/month, enhanced search and recommendation capabilities, and a new in-car platform called 360L. * Objective: The platform aims to grow subscribers, subscription revenue, and advertising over time. 2. Strategic Cost Management * Efforts: SiriusXM has been focused on strategic cost management, identifying $40 million in net savings in the last quarter. * Focus: The company will continue to focus on cost reductions while also investing in product and technology. 3. Balance Sheet and Free Cash Flow * Balance Sheet: SiriusXM has a strong balance sheet with $2 billion in liquidity and no bond maturities until 2026. * Free Cash Flow: The company expects free cash flow to grow over the next five years, despite high capital expenditures for satellite and non-satellite CapEx. 4. Subscriber Growth * Trends: SiriusXM expects meaningful improvement in subscriber net adds next year compared to this year. * Challenges: Vehicle-related churn, particularly in the used car market, remains a challenge. * Strategies: The company is focusing on partnerships and programs to drive conversion rates and improve subscriber retention. 5. Advertising * Assets: SiriusXM has a unique set of assets in audio, including SiriusXM broadcast, Pandora, and other off-platform advertising. * Podcasting: Podcasting has seen strong growth, with a focus on ad representation deals and exclusive content partnerships. * Monetization: SiriusXM is exploring different monetization opportunities, including ad-supported and subscription models. 6. Pricing Strategy * Streaming: The new streaming service will be priced at $9.99/month, positioning it as a complementary product to other music streaming services. * ARPU: SiriusXM's ARPU is trending at $15.70, with a focus on balancing core subscriber base growth with new demand capture. 7. Liberty Proposal * Discussion: SiriusXM is actively discussing a proposal from Liberty regarding additional leverage. * Objective: The company aims to reach its long-term target leverage rate of the low to mid three times EBITDA range. * Timeline: The resolution of the proposal is expected to be positive and will position the company well for future growth.