Analyst: Sat Radio Growth 2% In July
August 30, 2006 at 6:11 AM (PT)
BANC OF AMERICA SECURITIES analyst JONATHAN JACOBY's latest report, issued TUESDAY, reports that SIRIUS SATELLITE RADIO and XM SATELLITE RADIO unit sales rose 2% year-to-year for the month of JULY, which is an improvement from JUNE's flat sales but still slower than the indistry's previous pace. SIRIUS' share of sales slipped from JUNE's 61% to JULY's 58%, but XM's unit growth fell 29% year-to-year as the company had to stop shipping receivers due to FCC emissions limit violations while SIRIUS took advantage and was up 49% in unit growth on a year-to-year basis.
JACOBY says that while he continues to recommend SIRIUS and XM stock, “we do not believe that satellite radio is out of the woods yet regarding the fallout from the FCC issue.”