Sirius Satellite Radio (SIRI) ended 2Q06 with nearly 4.7 million subs, up 158 percent over the non-Howard Stern quarter — capturing, the company says, 60 percent of industry net additions. Revenue for the quarter nearly tripled to $150 million from $52 million the previous year. But, as was the case with competitor XM, the net loss was wider, too — a loss of 17 cents per share compared to a loss of 13 cents per share in 2Q05. Thomson First Call analysts estimated a loss of 16 cents per share on revenues of $146.9 million, so a mixed bag in that regard.
— Acquisition costs are still high but down 18 percent to $131 from $160 in 2Q05.
— Average revenue per sub (ARPU) was $11.16, including $0.62 from net advertising revenue. In the same quarter last year, ARPU was $10.50 with $0.22 from advertising. The long-term goal is to have 10 percent of revenue come from ad sales.
— The automotive OEM channel showed a 167 percent increase over 2Q05 — and delivered more net adds than retail.
— Advertising revenue hit $8.1 million, up from $1.05 million in 2Q05. For the first six months of the year, Sirius already has taken in $15.4 million compared with $1.5 million for the first six months of 2005.
Earnings call: CEO and head cheerleader Mel Karmazin talked about overall satellite sub progress, which some analysts say is slowing down. “… it is very important to remember that the satellite penetration remains low and there is big growth ahead for many, many years to come. By the end of this year, if you relate the number of satellite radio subscribers from us and our competitor to just the number of households in the United States — approximately 109 million households, and that doesn’t include the 216 million cars on the road — the penetration is still less than 15%.”
— Sirius video offering: Karmazin said the company is close to signing video deals for the 2H06 launch.
– New player: Personal live satellite radio product Stiletto “is great” and has been in beta testing with plans for a launch by summer’s end. We have been beta testing it for a few weeks and we will have it available to consumers by the end of the summer.”
— FCC & FM: Discussions continue with the FCC about FM modulator issues. There’s enough product in the pipeline to avoid a shortage.
Release | Webcast | Transcript (via SeekingAlpha.com)
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