New York — Sirius Satellite Radio reported that revenue during the second quarter nearly tripled to more than $150 million, dramatically increased the number of subscribers, but its net loss for the quarter increased by $60.3 million vs. the same time last year.
Second-quarter revenue was $150.1 million for the quarter while the second quarter of 2005 had revenue of $52.2 million, a 188 percent increase driven by an increase of subscriber and net advertising revenue. Sirius reported it had 2.86 million more subscribers on June 30 than it had the previous year.
Sirius ended the second quarter with 4.68 million subscribers, 158 percent higher than 2005’s second quarter which ended with subscribers of 1.81 million. During this time the company reported it added 600,460 net subscribers, a 64 percent increase over second-quarter 2005 net subscriber additions of 365,931.
Sirius claimed that for the third consecutive quarter, it led the satellite radio industry in net subscriber additions, capturing a record 60 percent share of industry net additions in the second quarter.
“Continued strong demand for Sirius’ products and programming gives us confidence to increase our revenue and subscriber guidance,” said Mel Karmazin, CEO. “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 the second quarter Sirius added 276,294 net subscribers from its retail channel, a 13 percent increase over 244,985 retail net additions during the second quarter of 2005. The company also added 324,574 net subscribers from its automotive OEM channel, 167 percent more than second-quarter 2005 OEM net subscriber additions of 121,664. Strong contributions by its exclusive automotive partners, DaimlerChrysler and Ford, fueled OEM growth during the quarter, Sirius said.
The company reported a net loss of $237.8 million vs. a net loss of $177.5 million for the previous year’s second quarter, which included the write-off of certain long-lead time parts purchased in 1999 that will no longer be needed in light of the company's new satellite contract.
The satellite radio provider also increased its total revenue for 2006 to $615 million and year-end subscribers to 6.3 million.