Sirius XM Looks For Strong 2012 Profit Growth After 11.9% Price Increase

Sirius XM shares are up about 6% mid-day after the company said that a January price hike will help next year’s revenues grow 10% to about $3.3B while its free cash flow will rise 75% to about $700M. CEO Mel Karmazin is salivating over the satellite radio company’s first price increase in a decade, to $14.49 a month from $12.95. Karmazin told the Bank of America Merrill Lynch Media, Communications and Entertainment Conference that although the economy is “very sloppy,” Sirius XM expects to end this year with about 22.2M subscribers — up more than 7%, a higher increase than the company saw in 2010.

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