Sirius (SIRI): Getting Subscribers Is Getting Harder

Investing

Published: July 31, 2007 6:10 am

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Sirius (SIRI) reported second quarter results, including a 51% increase in revenue from the year ago quarter to $226.4 million, and strong subscriber growth of 561,493 new subscribers during the quarter driving ending subscribers to over 7.1 million.

The company’s net loss improved by 44% to ($134.1) million, or ($0.09) per share, for the second quarter of 2007, from ($237.8) million, or ($0.17) per share, for the second quarter of 2006.

SIRIUS issued the following guidance for the full year 2007:

— Total revenue approaching $1 billion
— More than 8 million subscribers at year-end
— Average monthly subscriber churn of approximately 2.2% – 2.4%
— SAC per gross subscriber approaching $100

However, monthly subscription revenue dropped to $10.24 to $10.62 year-over-year, a sign of discounting and churn rose from 1.8% to 2.1%

Douglas A. McIntyre

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