Karmazin On Sirius XM's Future; Q2 Financials
August 7, 2008 at 5:27 AM (PT)
THE NEW YORK TIMES interviewed SIRIUS XM CEO MEL KARMAZIN in its Technology section TUESDAY (8/5), and uncovered some surprises about the satellite merger -- and KARMAZIN's plans for the company. KARMAZIN says he spent the past year of his life in constant fear that his dream deal was about to unravel. While integrating mergers is a nightmare for most executives, KARMAZIN says he loves it. He has to slash some $400 million in annual costs and seems almost giddy at the prospect.
"When I became the CEO of CBS, the first thing I did was sell the artwork," he said with a smirk, referring to his tenure at VIACOM before being ousted after a public battle with SUMNER M. REDSTONE. For good measure, he left the walls bare to remind employees he was running a tight ship.
Iâ??m not a visionary; Iâ??m an operator. The bankers all want the next transaction.
His goal is turn the company into a profitable business, something he suggests is just a year or two away. "Then we can argue about what the company is worth," he said, arguing that it is nearly impossible to properly value money losing business using traditional metrics.
Company For Sale?
In a shocker, KARMAZIN hinted he may try to sell SIRIUS-XM, like he has the ventures he has run before. "I’m not a visionary; I’m an operator," he said. "And I’ve been a seller. The bankers all want the next transaction."
Read the full interview here.
Sirius Q2 Financials Reported
SIRIUS XM RADIO has announced stand-alone SIRIUS SATELLITE RADIO second-quarter 2008 financial results, including a 25% increase in revenue to $283.0 million, total subscribers in excess of 8.9 million and a 70% decrease in the adjusted loss from operations.
"Second-quarter stand-alone SIRIUS results once again demonstrated that we achieved strong revenue growth and solid cost control," said CEO MEL KARMAZIN. "Despite a tough economy and weak auto sales, gross additions set a new second-quarter record. In the second quarter, both revenue and subscribers grew 25% as compared with last year, while cash costs remained essentially flat leading to a 70% reduction in our second-quarter EBITDA loss."
Total revenue for the second-quarter 2008 increased to $283.0 million, up 25% from second-quarter 2007 total revenue of $226.4 million. Second-quarter 2008 average monthly self-pay customer churn rate was 1.6%. The second-quarter 2008 conversion rate was approximately 48%. SAC per-gross-subscriber addition was $78 in the second-quarter 2008, an improvement of 27% over second-quarter 2007 SAC per-gross-subscriber addition of $107.