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Sirius Satellite Reports Wider Q2 Loss Despite Revenues Surge |
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NEW YORK, Aug. 2, 2006/Satnews Daily/ ― Sirius Satellite Radio revealed on Tuesday second quarter adjusted net loss of $159.62 million or $0.11 per share, compared to a adjusted net loss of $136.32 million or $0.10 per share in last year quarter.
Sirius, however, reported that its second quarter 2006 revenue nearly tripled from the year-ago second quarter to more than $150 million prompting the company to increase its 2006 guidance for total revenue to $615 million and year-end subscribers to 6.3 million.
Sirius said it ended the second quarter with 4,678,207 subscribers, 158 percent higher than second quarter 2005 ending subscribers of 1,814,626. During the second quarter of 2006, it added 600,460 net subscribers, a 64 percent increase over second quarter 2005 net subscriber additions of 365,931.
Sirius said for the third consecutive quarter, the company led the satellite radio industry in net subscriber additions, capturing 60 percent share of industry net additions in the second quarter.
Sirius rival, XM Satellite Radio Holdings Inc. (Nasdaq: XMSR), reported last week that it recently surpassed seven million subscribers. For the second quarter 2006, XM said it recorded gross subscriber additions of 926,281 and net subscriber additions of 398,012.
“Continued strong demand for Sirius’ products and programming gives us confidence to increase our revenue and subscriber guidance,” said Mel Karmazin, CEO of Sirius.
Sirius total revenue for the second quarter of 2006 increased to $150.1 million, nearly triple last year's second quarter total revenue of $52.2 million. Average monthly revenue per subscriber (ARPU) was $11.16 in the second quarter of 2006, up from $10.50 in the year-ago second quarter. ARPU for the second quarter of 2006 included a $0.62 contribution from net advertising revenue, compared with a $0.22 contribution from net advertising revenue in the second quarter of 2005.
Average monthly churn was 1.8 percdnt, in line with the company's annual churn guidance, reflecting total churn from both retail and OEM channels. SAC per gross subscriber addition was $131 for the second quarter of 2006, an 18 percent improvement over second quarter 2005 SAC per gross subscriber addition of $160.
Sirius’ Canadian affiliate, Sirius Canada, passed the 100,000 subscriber milestone in early May, less than six months after launching its Canadian service.
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