Sirius XM reports subscriber gains (and big losses)

Excerpted from AP, “Sirius XM Radio posts $4.88B loss”,  11.11.08

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Sirius XM Radio Inc. said its losses totaled $4.88 billion in the third quarter …  revenue gained 16 percent to $612.8 million, from $529.2 million last year.

“Sirius XM third quarter results demonstrate strong revenue growth, solid cost control and most importantly a clear path to positive cash flow,” said Chief Executive Mel Karmazin. He noted that self-pay monthly customer churn remained flat from last year at 1.7 percent.

“In the first 60 days following the merger, Sirius XM is operationally very close to breakeven,” he said.

Sirius ended the quarter with 18.9 million subscribers, a 17 percent gain over its 16.2 million subscribers at the end of last year’s third quarter … and projected that it will end 2008 with 19.1 million subscribers and end 2009 with 20.6 million subscribers.

Sirius XM said the difficult economic environment, particularly a dramatic slowdown in auto sales, have hurt subscriber growth for 2008 and 2009. The company generates many of its new customers through sales of cars that have its radios installed at the factory.

Full article:

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