Sirius Announces Q2 Numbers, Howard Stern To Heavily Promote Satcaster This Fall
August 1, 2006
Sirius has announced its second quarter fiscal results, with an increase in revenue and subscriptions, but also wider net loss. For the quarter, revenue almost tripled from 2005's Q2, reaching just over $150 million. Subscriptions are also up, with approximately 4.7 million subscribers currently, 158 percent more than a year ago. During the quarter, Sirius added 600,460 new subscribers. However, Bank Of America analyst Jonathan Jacoby notes that up to six percent of subscriptions counted by Sirius are actually in unsold vehicles at car dealerships around the country.
The satcaster also saw its net loss for the quarter increase to $237.8 million from $177.5 million in 2005's second quarter. Despite the loss, Sirius has raised its financial outlook for 2006 to $615 million in revenue and now projects to have 6.3 million subscribers at year's end.
"Continued strong demand for Sirius' products and programming gives us confidence to increase our revenue and subscriber guidance," said CEO Mel Karmazin. "We continue to be excited about the growth prospects for satellite radio and remain pleased with our solid execution as we approach positive free cash flow."
During Karmazin's conference call this morning, he said that the company will utlize its biggest star, Howard Stern, in "an aggressive campaign in the fourth quarter" of 2006. Stern was of course, unable to directly shill for the satcaster much of last year, since he was still working for CBS Radio.
Karmazin also revealed that a new "personal live satellite radio product" is set to debut soon. The handheld device, nicknamed Stiletto, has been in beta testing and Karmazin said that it will be on-sale "by the end of the summer."
Also during the conference call, Sirius President of Operations and Sales James Meyer added that the satcaster is "expected to have greater clarity from the FCC shortly" over its ongoing regulatory issues, according to Reuters.