Q2 Subscriptions Exceed Expectations For Sirius XM
August 4, 2010 at 4:15 AM (PT)
Good news for SIRIUS XM RADIO, as the satcaster released Q2 subscriber figures that far exceeded WALL STREET's expectations, "leading it to raise its forecast for the full year," reports THE NEW YORK POST. The struggling satellite radio broadcaster said it expanded its subscriber base by 6% to a record 19.5 million in the second quarter.
Auto sales were largely responsible for the increase.
SIRIUS XM raised its 2010 forecast for subscriber growth by nearly 50%, and that news sent its shares to close 6% higher. SIRIUS XM is up 67% this year. "Last year, SIRIUS XM was struggling as auto sales, which generate the bulk of its business, continued to be anemic and was in danger of being delisted after its share price fell below the $1 minimum," wrote THE POST.
BARRINGTON RESEARCH analyst JAMES GOSS told the paper that this year's subscription growth will make it easier for SIRIUS XM to generate profits in the future, as customer-acquisition costs will be lower. "This will help position them better for next year and beyond," GOSS said.
HOWARD STERN remains a pending issue for CEO MEL KARMAZIN, with the star's contract expiring at the end of this year. GOSS said it's possible CEO KARMAZIN will "extend the King of All Media's five-year, $500 million contract in a downsized form, resulting in less work and less money for STERN."