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Sirius XM Canada expects to keep its North American NHL satellite radio rights

January 15, 2014 - 10:36 AM

TORONTO - Sirius XM Canada Holdings Inc. expects to keep its North American rights to broadcast NHL games on satellite radio despite Rogers' deal with the National Hockey League for TV and multimedia broadcast rights in Canada.

Chief executive Mark Redmond says the 10-year, US$100-million deal with the NHL comes up for renewal at the end of the 2015 season.

Redmond says Sirius gives the NHL a North American platform with 27.5 million subscribers in the U.S. and Canada to its NHL Network Radio.

The deal was negotiated in 2005 with U.S.-based XM Satellite Radio Holdings, a rival of Sirius Satellite Radio but two companies later merged in the U.S. and Canada.

Redmond also says Toronto-based Rogers Communications (TSX:RCI.B) isn't licensed to operate satellite radio, which should favour Sirius XM.

Rogers scored the Canadian NHL rights late last fall in a $5.2-billion, 12-year deal that begins next season and includes the playoffs, the Stanley Cup final and gives Rogers national rights on multiple platforms.

Sirius XM Canada Holdings (TSX:XSR) held it annual meeting Wednesday in Toronto.

The satellite radio company is expecting more growth this year from the sale of cars that have the satellite radio service installed and in the used car market.

Late Tuesday, Sirius XM Canada Holdings Inc. reported record first-quarter revenue of $76.4 million and a 7.3 per cent increase in quarterly profits.

The revenue increase represented a gain of 11 per cent from $68.9 million in the same quarter a year ago.

Net profit of $3.5 million was up from $3.2 million in the prior-year period but unchanged on a per share bases at three cents per diluted share.

Meanwhile, the company said the number of self-paying subscribers increased 8.5 per cent to 1.8 million from 1.6 million a year ago, while its overall subscriber base grew to 2.4 million from 2.2 million.

News from © The Canadian Press, 2014
The Canadian Press

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