Sirius Q1 Loss Narrows, Revenues Rise
May 12, 2008 at 6:11 PM (PT)
SIRIUS SATELLITE RADIO's first quarter net loss narrowed from $144.7 million to $104.1 million (10 to 7 cents/share) year-to-year, with revenues up 33% to $270.4 million. The company ended the quarter with 8.64 million subscribers, 31% more than the same time last year. Average monthly revenue per subscriber fell from $10.46 to $10.42.
On the company's conference call, CEO MEL KARMAZIN said that "SIRIUS continues to execute extremely well. We are growing subs, growing revenue, controlling costs and continuing to pick up market share. We think that is a real good story." On the merger with XM ATELLITE RADIO, he said, "We filed our application at the FCC over 400 days ago. It is almost 350 days on the FCC clock from when it was put on public notice. The FCC historically tries to review deals within 180 days. We share the reasonable frustration that many of our investors feel regarding the time it has taken. We also share the outrage that some have expressed to me regarding press reports of opportunistic parties trying to take advantage of the process and extract value for themselves that properly belongs to SIRIUS subscribers and shareholders. I can assure you we will work with the regulators on any conditions they feel should be attached to an approval. I can also assure you that we will not do anything that is not in our subscribers', future subscribers' or shareholders' best interest. Our benefit of the merger to shareholders and consumers are extraordinary. The efficiencies created will be very substantial, and we will be able to capture a very material amount of them immediately."
"We believe in the merger," KARMAZIN said in response to a question about whether the company might come to a point when it gives up on the merger. "SIRIUS believes in the merger more so than we did even when we were announcing it. In spite of the debt market going the other way, but we believe that the synergies are important. If in fact we can get the FCC to move sooner, for which we have been asking, that is better. If it turns out that the conditions are such that they are so egregious that they are not in the shareholders' or subscribers' best interest, then we will not do it."