Tuesday, July 31, 2007

The New York Times

July 31, 2007

Sirius Satellite Radio Posts $134.1 Million Loss

Filed at 9:47 a.m. ET

NEW YORK (AP) -- Sirius Satellite Radio Inc. on Tuesday said its net loss slimmed substantially in the second quarter, as it added more than a half-million new subscribers and revenue grew by about 50 percent.

New York-based Sirius reported a net loss of $134.1 million, or 9 cents per share, compared with a loss of $237.8 million, or 17 cents per share, a year earlier.

On an adjusted basis, excluding stock-based compensation costs, Sirius lost 8 cents per share in the period. Revenue rose to $226.4 million from $150.1 million a year earlier.

Analysts polled by Thomson Financial on average expected a loss of 10 cents per share in the quarter on revenue of $228.3 million.

In other key metrics watched by investors, Sirius' cost for adding each subscriber fell to $108 from $131 in the same period a year ago.

Average monthly revenue per subscriber, however, fell to $10.71 from $11.71 in the same period a year ago, partly on a decline in average advertising revenue per subscriber.

Average monthly churn -- reflecting the rate at which users drop out of the service -- edged up to 2.1 percent from 1.8 percent in the same period a year ago.

Sirius reported net subscriber additions of 561,493 for the quarter, taking its total to more than 7 million.

The company also said it continues to expect that its combination with XM Satellite Radio Holdings Inc. will be completed by the end of the year.

The deal is facing tough regulatory scrutiny in Washington, and the two companies recently announced proposed pricing plans that would allow users greater choice in which channels they receive and how much they pay.

Sirius shares rose 10 cents to $3.07 in early trading Tuesday.