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Sirius Reports Sales, Sub Gains In 1st Qtr.

5/12/2008 04:43:00 PM Eastern

New York — Sirius reported double-digit sales and subscriber increases and a double-digit reduction in its loss for the first quarter, ended March 31.

"Sirius continues to demonstrate robust subscriber and revenue growth, along with strong cost discipline and significant improvement in our bottom line," said Mel Karmazin, CEO of Sirius. "Compared with a year ago, first quarter 2008 subscribers grew 31 percent, revenue grew 33 percent, while cash operating costs only grew 8 percent, leading to a 55 percent decline in our adjusted loss from operations."

"We await the [Federal Communications Commission] decision on our pending merger with XM, and we are eager to deliver the strong benefits of the combined company to our subscribers and stockholders."

Sirius ended first quarter 2008 with 8.64 million subscribers, up 31 percent from 6.58 million subscribers at the end of first quarter 2007. Retail subscribers increased 10 percent in the first quarter 2008 to 4.64 million, from 4.23 million at the end of first quarter 2007. OEM subscribers increased 72 percent in the first quarter 2008 to 3.98 million, from 2.32 million at the end of first quarter 2007. During the first quarter 2008, Sirius added 322,534 net subscribers and achieved a 52 percent share of satellite radio net subscriber additions.

Total revenue for the first quarter 2008 increased to $270.4 million, up 33 percent from first quarter 2007 total revenue of $204 million.

Sirius reported a first quarter 2008 net loss of $104.1 million, an improvement of 28 percent over first quarter 2007 net loss of $144.7 million. The adjusted loss from operations for first quarter 2008 improved 53 percent to $39.5 million, as compared with the adjusted loss from operations of $84 million in first quarter 2007.