Shares of Sirius XM Canada (TSX:XSR) spiked today, closing up 5.5% to $8.65 after its fourth quarter report revealed a topline that grew 11.2% to $75.7-million.
The quarter was roundly cheered by the street. RBC Capital maintained its “Outperform” rating, but increased its one year target to $10.00, up fifty cents from their previous $9.50 target. CIBC, which also has an “Outperform” rating, increased its target from $9.00 to $9.50, and TD Securities upgraded the stock from “Hold” to “Buy” and raised its target price from $9.00 to $9.50.
CEO Mark Redmond characterized the year.
“Two thousand thirteen was Sirius XM Canada’s second year as a combined entity. In all respects, it was a successful year in which we met or exceeded the key operational and financial goals we set,” he said. “At the core of our recent success has been our ability to grow our subscriber base. We’ve added more than 444,000 net total subscribers since the merger, and this in turn has driven our strong financial performance and enabled us in fiscal 2013 to begin to return capital to shareholders in the form of dividends.
Sirius XM Canada received CRTC approval on April 11, 2011 to merge XM Radio Canada and Sirius Canada services following the merger of their U.S. parents. XM Satellite Radio and Sirius Satellite Radio in the United States. Current chairman John Bitove’s Canadian Satellite Radio Holdings Inc., the licensee of the former XM Radio Canada, holds 30.3% of the company, the CBC, which was a major shareholders in Sirius, owns 20.4%, as does Slaight Communications. Sirius XM owns 25%