Sirius XM Q1 Revenues Up, Sub Count Down From Q4
May 7, 2009 at 5:15 AM (PT)
SIRIUS XM RADIO first quarter 2009 pro forma revenue rose 5% year-to-year to $605.5 million and grew from 2007's pro forma adjusted loss from operations of $70.2 million to positive adjusted income from operations of $108.8 million. Subscriber acquisition cost per gross subscriber addition fell 26% to $61. Pro forma net loss narrowed 73% to $62.9 million, and pro forma free cash flow narrowed 99% to $3.6 million.
The company ended first quarter 2009 with 18,599,434 subscribers, up 3% year-to-year but down 2% from fourth quarter 2008. Pro forma average revenue per subscriber fell from $10.48 to $10.43 year-to-year. Pro forma self-pay monthly customer churn rose from 2.1% for SIRIUS and 1.8% for XM to 2.2% combined.
"Satellite radio is now a cash flow growth story," said CEO MEL KARMAZIN. "First quarter 2009 adjusted income from operations of $108.8 million is our second consecutive quarter of positive adjusted income from operations and represents an improvement of $179 million over last year's first quarter pro forma loss from operations of ($70.2) million. With a 5% increase in pro forma revenue and a 23% decrease in cash operating costs, these results demonstrate our focus on improving profitability despite slower automobile sales and a 2% sequential decline in satellite radio subscribers. The growth in adjusted income from $31.8 million in the fourth quarter of 2008 to $108.8 million in the first quarter of 2009 should give investors comfort that we are well positioned to exceed $350 million in adjusted income from operations this year, an increase from our prior guidance to exceed $300 million."
SIRIUS XM projects over $350 million in 2009 adjusted income, an increase from the company's previous guidance of over $300 million in 2009 adjusted income.