Sirius Satellite Reports Quarterly Loss

NEW YORK, Oct. 28/Satnews Daily/ ¾ Sirius  Satellite Radio Inc. (NASDAQ:SIRI) has posted a wider loss of $169.4 million for the third quarter from a year earlier, as higher expenses more than offset a surge in revenue.

In a statement, Sirius said revenue rose 44 percent to $19.1 million while subscriber acquisition costs rose 82 percent to $47.1 million. Sirius said the loss was 14 cents a share, compared with a loss of $106.7 million, or 11 cents, a year earlier.

Sirius has been spending millions to lure new subscribers.  Last month, Sirius signed a five-year, $500 million programming deal with "shock jock" Howard Stern that begins in 2006. In December, Sirius will pay $220 million for the right to broadcast National Football League games.

 

Sirius said it ended the September 30, 2004 quarter with 662,289 subscribers and on October 18, 2004, the company passed the 700,000 subscriber mark, making it on track to reach one million subscribers by the end of this year.

According to Sirius, third quarter subscriber figure reflects net additions of 181,948, a 41% increase from the previous quarter, and a 310% increase from the third quarter of 2003. Sirius had 207,181 gross subscriber additions in the third quarter of 2004, with average monthly churn of 1.5%, down from 1.6% in the second quarter of 2004.

Joseph P. Clayton, CEO of Sirius said the introduction of exciting next generation products, more traction from our automotive channel, and our programming initiatives, such as the NFL, Eminem, and Maxim, the momentum is building for Sirius. “We will continue to drive all of these forces forward as we move into the busy holiday season and final quarter of the year."

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