Sirius Q4 Subscriber Count Jumps; Losses Up, Too
February 17, 2006 at 7:31 AM (PT)
Subscriber counts and revenue rose and net losses did, too at SIRIUS SATELLITE RADIO for fourth quarter 2006, as the company added 1,142,640 net subs in the quarter, a 56% share of the quarterly market, to end the year with 3,316,560 subscribers, giving the company 45% of the market at the end of 2005. The figures represent a quarterly increase of 138% year-to-year and up 190% for the year. Revenue for the year leaped 262% to $242.2 million, and subscriber churn was at 1.5%.
However, the company's net loss rose from $261.9 to $311.4 million for the quarter (21 to 23 cents/share) ($6.2 million of 2005's loss attributed to SIRIUS CANADA) and from $712.2 million to $863 million (57 to 65 cents/share) for the year ($6.9 million from SIRIUS CANADA).
On SIRIUS' conference call, CEO MEL KARMAZIN said of the company's increasing ad revenues that the service had already billed more than 2005's $6 million for the first six weeks of 2006. He said that he expects that ad revenues will ltimately approach 10% of overall revenues. KARMAZIN also said that the company still plans to add HOWARD STERN's show to its Internet streaming offerings but that security and audio clarity remain obstacles.