Sirius Reports 51% Q2 Revenue Jump
July 31, 2007 at 5:46 AM (PT)
SIRIUS SATELLITE RADIO second-quarter revenue jumped 51% to $226.4 million, as the company's net loss narrowed from $237.8 million to $134.1 million (17 to 9 cents'share) and the service's subscriber count rose 53% year-to-year to 7,142,538 at the end of the quarter. SIRIUS added 561,493 net subscribers, 431,650 of those from the OEM auto sales channel, and captures 62% of the satellite radio segment's market share. Ad revenue stood at $9.2 million.
"SIRIUS, once again, posted solid results," said CEO MEL KARMAZIN. "Both revenue and subscriber growth exceeded 50% while operating expenses before stock-based compensation and depreciation grew only 6%. Customer satisfaction remains high, reflected in our low all-in churn rate of 2.1%. We have added over 1.1 million net new subscribers so far this year, and second-quarter results mark the seventh consecutive quarter for leadership in satellite radio net additions and the third consecutive quarter of leadership in gross subscriber additions."
"Momentum for the pending merger with XM continues to build," added KARMAZIN. "Support from our customers, suppliers and other groups representing a diverse cross-section of Americans, clearly demonstrates the public interest benefits and enhanced competition that will come from the merger. We continue to work with the FCC and the DOJ to make the case that the merger offers more choices, including a la carte offerings and lower prices for subscribers, and we continue to expect that the merger will be completed by year-end."
"Compared to the year ago second quarter, revenue grew by $76 million and, with a clear focus on cost efficient growth, adjusted loss from operations improved by $47 million and free cash flow improved by $53 million," said EVP/CFO DAVID FREAR. "In addition, we are pleased with the 18% improvement in SAC per gross addition in the second quarter, and with continued strong OEM subscriber growth, we now expect SAC per gross addition will approach $100 for 2007."
The company issued guidance for full year 2007 including revenue approaching $1 billion, over 8 million subscribers, and average monthly subscriber churn of 2.2-2.4%.