XM Radio 2014 Annual Report Download - page 2

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Dear Fellow Stockholders,
I am pleased to report that 2014 was a year of strong, and, in some cases, record-setting
growth for SiriusXM. We achieved major financial milestones and further expanded our offerings of
programming and services. We are well positioned to build on this success in 2015 as we expand
and advance our services and launch even more dynamic programming on all our platforms.
During 2014, our operational and financial results exceeded our expectations and set new
company records, reflecting our position in the vehicle and the strength of our content. In particular,
we were excited about:
•Continuing to attract new subscribers at record levels. We ended the year with a record
27.3 million subscribers with 1.75 million net subscriber additions, which exceeded our
increased guidance of 1.5 million net additions.
•Growing the fleet of satellite radio-enabled vehicles. Seven out of every ten new cars
sold have SiriusXM installed. There are as many as 70 million vehicles on the road today
with satellite radio installed, and that will double to an estimated 140 million vehicles by
2022.
•Maintaining our position as the largest radio company by revenue. Revenue of $4.18
billion in 2014 was the highest in our history, growing by 10% from $3.8 billion in 2013.
•Generating significant cash flow growth. In 2014, we grew free cash flow to approximately
$1.16 billion, a 25% increase year-over-year.
•Delivering value by returning capital to stockholders. We continue to execute on our
stock repurchase program, repurchasing approximately $2.5 billion of our common stock in
2014.
•Building the best entertainment bundle in subscription media as the leader in audio
entertainment. We launched new channels and shows with major entertainment brands and
talent, across almost all of our music, sports, talk and entertainment genres, adding to our
more than 150 channels of live news and sports, commercial free music channels, and
exclusive entertainment offerings.
Our Content Attracts and Keeps Subscribers
SiriusXM continues to offer the best audio entertainment available anywhere. Programming is
the foundation of our success, and our unique and superior content is what continues to attract new
subscribers and retain our existing ones. We offer an unparalleled lineup of commercial-free music,
premier sports, comedy, news, exclusive talk and entertainment.
This past year, we added even more channels and shows created with major brands and
personalities. We’ve added fulltime channels with Joel Osteen, NBC’s TODAY Show, and Bleacher
Report. We’ve launched new talent on SiriusXM, such as Jenny McCarthy and Stephen A. Smith of