SIRIUS Q3 REVS UP 45%, SUBS UP 19% Mike Boyle – Radio and Records On Tuesday (Oct. 30), Sirius Satellite Radio reported that Q3 revenues increased 45% from a year ago to $241.8 million. The company also added 524,938 subscribers during the quarter, a 19% increase that drives the company’s total subscribers to 7,667,467, a 50% increase from Q3 2006 ending subscribers of 5,119,308. Sirius is projecting eight million subscribers by year’s end and total revenue approaching $1 billion.
Sirius’ Q3 net loss improved by 26% to ($120.1) million, or ($0.08) per share, for Q3 `07 from ($162.9) million, or ($0.12) per share, for third quarter 2006. The adjusted loss from operations for third quarter 2007 improved 32% to ($56.9) million from ($83.2) million for third quarter 2006.
"Sirius again posted solid results," said Sirius CEO Mel Karmazin. “Strong demand for the Sirius service drove robust subscriber growth and, when coupled with a continuing focus on cost control, allowed Sirius to significantly reduce our net loss and places us on-track to achieve our financial goals. We expect strong holiday season sales and we are targeting positive free cash flow for the fourth quarter of 2007.”
Regarding Sirius’ pending merger with XM Satellite Radio, Karmazin says the momentum “continues to build."
“The public interest benefits and enhanced consumer choice that will come from the merger have garnered clear support from our customers, suppliers and other groups representing a diverse cross-section of Americans,” Karmazin added. “Nearly all of the opposition to our proposed merger has been generated by those who fear enhanced competition. We will continue to work with the FCC and the DOJ to make the case that the merger offers more choices, including a la carte offerings, and lower prices for subscribers, and we continue to expect that the merger will be completed by year-end.”
Sirius will hold a special meeting of stockholders in New York on Nov. 13 to vote on the merger, which cannot be completed unless Sirius stockholders approve the amendment to Sirius’ certificate of incorporation and the issuance of Sirius capital stock in connection with the merger.
Sirius will be holding a Q3 results call Tuesday morning and R&R will have complete coverage immediately afterwards. |