Earnings: Subscriber Growth, Rising Revenues Help Slim Sirius’ Q2 Net Loss 44 Percent

Sirius Satellite Radio (Nasdaq: SIRI) narrowed its net loss in Q2 by 44 percent to $134.1 million, or $0.09 per share, from $237.8 million, or $0.17 per share, last year. Total revenue was up 51 percent to $226.4 million from $150.1 million in Q206. The better results were explained by Mel Karmazin, CEO of Sirius, as evidence of greater momentum for the radio service as it awaits regulatory approval for its proposed merger with XM Satellite Radio (Nasdaq: XMSR). Last week, XM said it reduced its net losses and raised its revenues in Q2 as well. Sirius also noted in its Q2 results:

— Sirius ended Q2 with 7.1 million subscribers, 53 percent higher than last year, when it finished the quarter with 4.6 million subs. Subscriber acquisition costs (SAC) declined by $3 million, or 2.8 percent, to $105.7 million.

— Ad revenue was $9.2 million in the second quarter of 2007 and average monthly revenue per subscriber (ARPU) was $10.71.

— Sirius captured 62 percent of satellite radio segment share, claiming that this was the seventh consecutive quarter it led in adding subs.

— New programming agreements resulted in increased content expenses about $8.2 million for a total of $53.1 million in Q2 from $44.9 million last year.

— For the first half of the year, Sirius reported total revenue of $430.5 million compared with $276.7 million for H106, an increase of 56 percent.
Earnings release | Webcast

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