Satellite radio provider Sirius XM (SIRI - Get Report)  on Wednesday reported first-quarter earnings that missed analysts' forecasts amid costs related to its recent acquisition of streaming music service Pandora.

Sirius said net income for the first quarter was $162 million, or 3 cents a share, vs. $289 million, or 6 cents a share, in the prior-year period. Analysts polled by FactSet had been expecting earnings of 5 cents a share.

The company attributed some $76 million of acquisition and other costs related to its acquisition of Pandora as well as a $31 million one-time benefit to other income in the prior-year period and a higher tax rate for the 44% drop in quarterly earnings.

Revenue came in at $1.9 billion vs. $1.7 billion in the year-earlier period, while earnings before income, taxes, depreciation and amortization, known as EBITDA, were $567 million vs. $447 million in the year-ago quarter.

However, the company said it is optimistic that increased subscribers to both its satellite and streaming music and entertainment services as well as growing advertising revenues will help bolster the bottom line going forward.

Do you remember where you were when you first heard "What's Going On" by Marvin Gaye? @CageTheElephant's Matt Schultz reminisces about his experience. Hear it 4/25 on @altnation. pic.twitter.com/RlyEQGBRaw

— SiriusXM (@SIRIUSXM) April 23, 2019

At quarter-end, Sirius XM's pro-forma debt to adjusted EBITDA was 3.2 times, while its cash on hand was $62 million. It also has credit capacity of approximately $1.2 billion that it can tap, Chief Financial Officer David Frear said in a statement.

"We will continue to use our strong financial position and ample liquidity to invest in our business, make strategic investments and return capital to stockholders."

Shares of Sirius XM were down 5.6% to $5.81 on the Nasdaq Stock Market.