SiriusXM's higher-than-expected subscriber loss clouds quarterly revenue beat

(Reuters) -Satellite-radio company SiriusXM posted a larger-than-expected loss in self-paying subscribers in the first quarter on Tuesday, overshadowing its upbeat revenue and sending its shares down 5%.

SiriusXM, which offers its audio products to automakers, said an increase in vehicle sales this quarter led to a "slightly higher churn" as a greater number of new and used vehicle buyers with existing subscriptions moved out of the self-pay base and into unpaid trials.

Self-pay subscribers decreased by 359,000 in the first quarter, compared with a loss of 201,900 estimated by Visible Alpha.

SiriusXM reported first-quarter churn — the rate of customers who stopped using the company's services — among self-pay users of 1.7% versus 1.6% a year earlier.

"We should see greater improvement in streaming as we move through the course of the year, with improvement in conversion really starting to come late in the year," CEO Jennifer Witz said on a post-earnings call.

SiriusXM has stepped up efforts toward bolstering its content line-up with exclusive talk-shows such as "This Life of Mine" with James Corden, which has gained popularity and helped the company to increase its media presence.

The company reported first-quarter revenue of $2.16 billion, above LSEG estimates of $2.13 billion, helped by a 7% rise in advertising revenue.

"We are seeing increasing success by taking a network-first approach, allowing for greater flexibility and audience targeting for our advertisers ... Buying across the SiriusXM Podcast Network allows marketers to target their key audiences at scale, and to reach dedicated fandom," Witz said.

The company's net income for the quarter stood at $265 million, versus $233 million a year ago.

(Reporting by Harshita Mary Varghese; Editing by Shilpi Majumdar)