New York — Satellite radio service provider Sirius ended the second quarter with 105,186 subscribers, an increase of 55 percent in the three months. At the end of December 2002, the company reported 29,947 subscribers.
"This continued growth in Sirius subscribers confirms that we are getting traction in the marketplace, and that our commercial-free music programming is gaining a wider audience," said Joe Clayton, president/CEO.
Total revenue in the second quarter, ended June 30, hit $2.1 million, up from $70,000 in the year-ago period.
However, Sirius increased its operating loss for the second quarter, to $109.8 million, compared with an operating loss of $89.9 million in the second quarter of last year.
Net loss in the second quarter took a slight dip, to $111.8 million, down from a loss of $113.3 million year-on-year.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) loss reached $86.3 million in the second quarter, compared with an adjusted EBITDA loss of $67.8 million in the same three months a year ago. The EBITDA loss for the second quarter of 2003 included a $14.5 million non-cash charge.
Sirius, during the second quarter, completed two major financial transactions, which eliminated the company's previously stated funding gap, and added about $357 million in cash, giving it added financial flexibility.
"In less than four months, Sirius has transformed itself to a company that is fully-funded, with $560 million in cash. With very little debt, our balance sheet is clearly the strongest in this new and exciting industry," said David Frear, executive VP/CFO.
Average monthly revenue per subscriber (ARPU) in the second quarter was $7.91. Excluding the costs of mail-in rebate programs, ARPU for the second quarter was $10.84. In the first half, Sirius recorded total revenue of $3.7 million, up from $103,000 in the first six months of 2002.
Loss from operations for the first six months widened to $208.9 million, compared with a $140.6 million operational loss in the year-ago period.
However, Sirius moved into the black in the first six months of 2003, registering income of $28.3 million, compared with a loss of $192.2 million year-on-year.
Adjusted EBITDA loss for the first half hit $161.4 million, up from a loss of $104 million in the first half of 2002. The EBITDA loss for the first six months in 2003 excludes a $256.5 million gain relating to restructuring and a $14.5 million non-cash charge.
For the first half, ARPU was $8.94. Excluding the costs of mail-in rebate programs, ARPU for the first six months was $10.85.