In what could be the last of its public financial disclosures, Sirius XM Canada Holdings Inc., the parent of satellite radio operator Sirius XM Canada Inc., reported $24.2 million in earnings before taxes in the first quarter of fiscal year 2017 on Wednesday.
The 3.1 per cent increase over the same period a year ago comes as the company is in the final stages of a privatization transaction.
In August, shareholders voted to approve a deal to give two of the company’s largest shareholders, Slaight Communications Inc. and Obelysk Media Inc., 33.5 per cent of voting shares and 15 per cent of the company’s total equity. The rest of the equity will end up in the hands of Sirius XM Holdings Inc., the U.S.-based company that owns the rights to the Sirius XM brand in America and currently has a 32 per cent stake in its Canadian counterpart.
The last remaining hurdle for the approval of the transaction approval from the CRTC, which wrapped up a public consultation on the proposed deal on Monday.
Sirius XM Canada’s total revenue for the three month period ending November 30, 2016 was $87.2 million, a 4.4 per cent increase from the same period a year earlier. The company attributed the growth to an increase in its self pay subscriber base, which grew 4.6 per cent to 2,029. However, net income fell 2.7 per cent to $9.8 million, which the company said was due to higher operating costs, depreciation and amortization.
Sirius XM Canada’s earnings for the quarter amounted to 8 cents per share. The company also announced that it has obtained approval to delay its annual general meeting, because it is in the process of finalizing its privatization.
On February 13, Sirius XM Canada will make a cash dividend payment of $0.1050 per class A and class C share, and $0.0350 per class B share to shareholders at the close of business on January 27.
The privization transaction, first announced in May 2016, comes with an offer of $4.50 per share, which some minority shareholders argued undervalued the company given a history of revenue growth and management’s own predictions that it will continue. The stock closed Wednesday at $5.19.