SiriusXM (XM) declined nearly 9% Tuesday after its chief financial officer said the company was experiencing "some softness" with its advertising sales since the beginning of March.
During remarks at the Deutsche Bank Media, Internet and Telecommunications investor conference, CFO Tom Barry said the satellite and internet radio company began seeing a drop in ad sales over the past week or two. The drop started with consumer packaged goods and retail advertisers, but has now extended into other categories, according to a FactSet transcript.
"I would say we're cautious about where the ad industry is going right now," Berry said, explaining that the effect of inflation and tariffs on imported goods is negatively influencing advertisers.
Despite those challenges, however, SiriusXM is not ready to adjust its financial guidance for 2025 and beyond, Berry said. The company, so far, has largely been able to mitigate the macro-economic factors and it also has recently started several initiatives to boost subscriber growth and retention, particularly with vehicle owners, as well as other efforts to expand access to its content and lower costs, he said.
"We feel very comfortable with our guidance, Berry said, later adding the company remains "fairly confident in our execution."
Price: 22.26, Change: -2.13, Percent Change: -8.75
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