Feb 5 (Reuters) - SiriusXM SIRI.O on Thursday reported a surprise rise in quarterly subscribers who pay directly for its satellite radio service, driven by demand for its exclusive content including sports programming and shows from popular hosts.
Shares of the Manhattan, New York-based company rose over 5.2% in premarket trading.
The audio entertainment provider relies on exclusive content and high-profile talent to stand out in a crowded market, with a diversified model that spans music, sports and talk programming, distributed through automakers, mobile apps and connected devices.
In December, radio host Howard Stern renewed his contract for three more years. The company also launched a channel with journalist Megyn Kelly in the quarter.
SiriusXM added about 110,000 self-pay subscribers in the fourth quarter, its first gain in the segment after losses in the previous three quarters.
Visible Alpha analysts had expected a loss of 30,329 subscribers.
Subscriber numbers were also boosted by the rollout of "Continuous Service," which automatically keeps a user’s subscription active, and an early launch of "Companion Subscriptions," which give full-price members extra, free accounts for their family or other cars.
The company also benefits from partnerships with automotive companies that offer free subscription trials for in-car access to its satellite radio services.
SiriusXM reported revenue of $2.19 billion for the quarter ended December 31, beating estimates of $2.17 billion, according to data compiled by LSEG.
The company forecast revenue of about $8.5 billion for 2026, largely in line with expectations of $8.55 billion.
Last month, it appointed former PVH PVH.N finance chief Zac Coughlin as its CFO.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Sahal Muhammed)
((Anhata.Rooprai@thomsonreuters.com))