SIRIUS XM Keeps Growing (SIRI)

SIRIUS XM Radio Inc. (NASDAQ: SIRI) is trading higher after its earnings report this Wednesday morning.  The king and monopoly of satellite radio reported a 16% gain in revenues to $705.6 million, a 17% gain in EBITDA of $154.3 million, and it earned $15.3 million on an adjusted basis (earnings per share of $0.00 due to high share count). Thomson Reuters had estimates at $0.00 EPS and $691.3 million in revenues.  The second quarter generated free cash flow of $108.3 million versus $12.7 million a year ago.

SIRIUS also ended the quarter with 19,527,448 subscribers, a record and a gain of 1.1 million from a year ago after Q2’s net subscriber additions were 583,249. Average revenue per subscriber was up 11% to $11.81 and the self-pay monthly churn rate was down 0.2 points to 1.8%.  Gross additions rose 46% while deactivations fell 8%.

Mel Karmazin is again raising guidance for 2010.  He expects SIRIUS to generate nearly $2.8 billion in revenue, approximately $575 million in adjusted EBITDA and expects free cash flow of nearly $150 million.  SIRIUS XM had already increased its guidance for net subscriber adds to right at 1.1 million for 2010.

Shares are up 4% at $1.05 after closing at $1.01 yesterday, and there are almost 250,000 shares traded even at the 8:00 AM read.  The 52-week range is $0.46 to $1.25.

JON C. OGG