Sirius XM Canada Holdings offers satellite radio shareholders special dividend

TORONTO – Sirius XM Canada Holdings Inc., parent of satellite radio company Sirius XM Canada Inc., says it will pay a special dividend, reflecting its strong balance sheet.

Sirius XM Canada (TSX:XSR) said Wednesday that it will pay a special dividend of 58.5 cents to holders of its class A subordinate voting shares which are traded on the Toronto Stock Exchange and to holders of its class C non-voting shares.

It will also pay a dividend of 19.5 cents per share to class B voting shareholders.

The company said it’s the second special dividend in less than two years and reflects its ability to generate cash flow and its stronger balance sheet as a result of its recent debt financing.

In April, Sirius XM Canada Holdings reported an increase in both revenue and net profit in its fiscal second quarter.

It said net earnings rose 8.3 per cent to $4.4 million from just under 4.1 million a year earlier and revenue increased 6.8 per cent to $75.5 million from $70.2 million in the comparable year-earlier period.

The number of self-paying subscribers had increased 7.8 per cent to 1.8 million from 1.6 million a year earlier, while the total number of subscribers increased to almost 2.4 million from 2.2 million.

Note to readers: This is a corrected story: A previous version incorrectly said the special dividend would be 5.85 cents