Sirius Posts $261.9 Million Loss in 4Q 2004

NEW YORK, Jan. 27/Satnews Daily/ ¾ Sirius Satellite Radio posted a fourth-quarter loss of $261.9 million (21 cents a share), compared with a loss of $147.8 million (14 cents) in the corresponding period a year ago even as revenue rose to $25.2 million, compared with $5 million for the fourth quarter of 2003.

Announcing its fourth quarter and year-end 2004 financial and operating results, Sirius said it had 1,143,258 subscribers on Dec. 31, 2004, beating its year-end target of 1 million, and had over 1.24 million subscribers as of January 24, 2005.

The company attributed much of the better-than-expected year-end number to robust holiday sales and an increase in its automotive channel business, driving revenue to $66.9 million, a 419% increase over the previous year. The company said it is raising its 2005 year-end subscriber estimate to over 2.5 million.

Sirius said its fourth quarter subscriber figure reflects net additions of 480,969 subscribers, a 332% increase from net additions in the fourth quarter of 2003. The company had 521,479 gross subscriber additions in the fourth quarter of 2004, and reported average monthly churn of 1.6% for the full year 2004, the company’s best-reported churn rate to date and below previous guidance.

The company also reported subscriber acquisition costs (SAC) per gross subscriber addition of $177 for the full year 2004, a significant improvement over $293 for 2003 and well inside 2004 guidance of below $200.

 “2004 was a turning point for Sirius, and a strong indicator of what we believe the future holds for a new entertainment category still in its early days,” said CEO Mel Karmazin. “Not only did we greatly exceed our estimated subscriber target for the year, but we also beat estimates in subscriber acquisition costs and monthly churn.”

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