Karmazin: Sirius Sub Stats Show ‘Remarkably Positive Turn’

Mel Karmazin

Yes, it’s a bit of hyperbole — a Mel Karmazin specialty — but the CEO of Sirius XM (NSDQ: SIRI) has something to be excited about in consecutive quarters after years of slogging through. Sirius showed its first post-merger profit in Q409 and now preliminary Q1 numbers from the satellite radio company show subscriptions and conversions up and deactivations down, Karmazin called the results results “a remarkably positive turn from the year ago quarter.” One example: Sirius added 171,441 net subscribers in Q12010, compared with a net loss of 404,422 in the same quarter last year.

Karmazin includes programming as a reason but the other two are more likely: recovering auto sales and an improving economy. He also promises the results will show “solid revenue growth” when earnings are released in May. Some more numbers:

— Sirius ended Q1 with 18,944,199 subscribers, up 344,765 over Q109.
— Deactivations dropped by 11 percent.
— Trial subscriptions included in car sales converted to paying subscriptions hit 45.2 percent, up slightly over 44.6 percent in Q109.

The release pused the stock over $1. It was trading mid-morning at $1.02, up 6.15 percent.


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