Sirius Q3 Revenues Jump, Loss Narrows

Losing Less

SIRIUS SATELLITE RADIO third-quarter revenues leaped 150% to $167.1 million as the company hints that fourth quarter 2006 could be, as previously promised, cash-flow positive. The company's adjusted loss fell 21% year-to-year to $162.9 million (12 cents/share).

SIRIUS says that it ended the quarter with 5,119,308 subscribers, 135% above third quarter 2005, adding 441,101 net subs (23% more than in third quarter 2005). The figure represents 61% of satellite radio's net sub adds in the quarter, with 205,900 coming from retail and 236,500 from automotive OEM subscriptions. Churn rose from 1.8% to 2%.

CEO MEL KARMAZIN said, "SIRIUS continues to focus on excellence in programming and solid execution of our business plan. Over the last year, we generated $100 million in new revenue, increased our share of satellite radio net subscriber additions by 24 percentage points and reduced our SAC per gross addition by 23%. SIRIUS has never been in a stronger position heading into the key fourth-quarter holiday season, with exciting new products, compelling programming, and strong relationships with our retail and exclusive OEM partners. We are well prepared to meet fourth-quarter demand and remain focused on achieving positive free cash flow."

For the full year, SIRIUS projects 6.3 million subscribers, 1.8% average monthly churn, total revenue of $615 million, and adjusted loss from operations of about $565 million.

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