Pink's Bottom Line on Media, Money and Sports

SiriusXM earnings, slowing GDP growth and Mike Tomlin of the Pittsburgh Steelers

In today’s newsletter, I discuss SiriusXM earnings, slowing GDP growth and Mike Tomlin of the Pittsburgh Steelers.

MEDIA: SiriusXM Earnings

SiriusXM, an audio entertainment company in the United States known for its subscription service in cars, reported quarterly earnings earlier today.

The company said that net subscribers grew by 616,000 last quarter, and that it has added a net 1.1 million subscribers for the year so far.

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While SiriusXM said it also expects to see net subscriber growth next quarter, the company also said in its earnings report that lower auto sales in the third quarter — auto sales in the country have slowed due to supply issues — “will reduce conversion opportunities in the fourth quarter.”

In other words, those slower auto sales in the third quarter mean that there are fewer potential SiriusXM customers who could buy subscriptions for their cars.

Still, SiriusXM increased its guidance for the fourth quarter, suggesting that the entirety of its business is performing well.

MONEY: Slowing GDP Growth

The nation’s GDP grew 2% in the third quarter compared to the second quarter, according to a government report released earlier today.

That would mark the slowest quarterly growth since the second quarter of 2020 at the beginning of the pandemic.

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The pace of economic growth in the third quarter likely declined as the spread of the Delta variant halted business reopening plans in many parts of the country.

Notably, Personal Consumption Expenditures (PCE) — a measure of consumer spending — grew 1.6% in the third quarter, down from a 12% increase in the second quarter.

If consumer spending begins to increase sharply again in the fourth quarter as the spread of the Delta variant fades, look for GDP growth to increase sharply again in the fourth quarter.

SPORTS: Mike Tomlin of the Pittsburgh Steelers

Mike Tomlin, head coach of the Pittsburgh Steelers, is perhaps one of the most under appreciated coaches in the NFL.

Tomlin has been at the helm of the Steelers for 15 years, has a 148-81-1 record, has never had a losing season and has won a Super Bowl.

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In the past few years, Pittsburgh’s star quarterback Ben Roethlisberger has declined, but the Steelers have been in the playoff mix just about every year thanks largely to the coaching of Tomlin.

While the Steelers currently have a 3-3 record and are in fourth place in the rugged AFC North, they still have a decent chance to make this year’s postseason.

Look for the Steelers to remain in the mix for a playoff spot until late in the regular season again this year as Tomlin will undoubtedly find ways to keep the team competitive.

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Jeremy Pink is currently an advisor to media and fintech companies around the world. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)