Karmazin Explains 'Best Of Both' Programming

Mel Karmazin

Nothing EARTH-shattering from SIRIUS XM CEO MEL KARMAZIN TODAY, as he provided an update on the company's guidance, a detailed breakdown of expected 2009 synergies, and an outline of the company's new "Best of Both" programming options. The guidance and information was outlined at the 2008 MERRILL LYNCH Media Fall Preview Conference in MARINA DEL REY, CA. 

Highlights of the speech included:

* The company expects to end 2008 with approximately 19.5 million subscribers and to end 2009 with approximately 21.5 million subscribers.

* SIRIUS XM expects to post pro forma revenue of approximately $2.4 billion in 2008 and to post revenue of approximately $2.7 billion in 2009. 

Adjusted EBITDA

* The company expects a pro forma adjusted EBITDA loss of approximately $350 million in 2008 and reiterated its previously stated financial guidance of approximately $300 million in positive adjusted EBITDA for 2009.

* SIRIUS XM announced it is increasing its estimate of net synergies to $425 million in 2009.

* The Company also provided a line item breakdown of how the expected 2009 synergies will be achieved, which will be available as an exhibit to the Current Report on Form 8-K that the company is filing today.

"We have made great strides over the last six weeks and continue to make progress integrating the company and delivering on our promises to customers and stockholders," said KARMAZIN. "We are finding significant cost savings on every line item of the P&L and are beginning to realize these synergies already. SIRIUS XM also continues to be one of the strongest growth stories in media, with pro forma revenue growth of approximately 17% in 2008."

The company also announced the content lineup for SIRIUS XM's new "Best of Both" programming options. As part of "Best of Both" programming, most current XM customers will continue to receive their existing XM service, and be able to obtain select SIRIUS programming. Likewise, most current SIRIUS customers will continue to receive their existing SIRIUS service and be able to obtain select XM programming. In addition to their existing service, SIRIUS and XM subscribers will be able to purchase the following channels:

SIRIUS on XM 

HOWARD 100
HOWARD 101 
MARTHA STEWART Living Radio 
SIRIUS NFL Radio
SIRIUS NASCAR
PLAYBOY Radio

XM ON SIRIUS

NBA (the official release from SIRIUS XM puts the NBA in the XM package, but the NBA is presently aired on SIRIUS)
NHL Home Ice
OPRAH & Friends
The Virus
Public Radio With BOB EDWARDS
College Sports
PGA Tour

The sports offerings will also include channels for play-by-play of NBA, NHL, NFL, and College Sports games.

For Both About To Rock....

The first illustration of the merged satcaster offerings is in TODAY's announcement of exclusive AC/DC channels on both networks. AC/DC Radio, which will highlight their new album "BLACK ICE," will be broadcast on SIRIUS channel 29 and on XM channel 53 from MONDAY, SEPTEMBER 15th, 2008 to JANUARY 15th, 2009.

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