New York — Sirius Satellite Radio reported double-digit revenue gains for its fiscal year and fourth quarter and reduced losses for both periods.
Total revenue for its fiscal year, ended Dec. 31, 2007, increased to $922.1 million, up 45 percent from 2006 total revenue of $637.2 million. Fourth-quarter 2007 total revenue increased 29 percent to $249.8 million from fourth quarter 2006 revenue of $193.4 million. Average monthly revenue per subscriber (ARPU) was $10.46 in 2007 and $10.05 for the fourth quarter 2007.
Sirius reported a net loss of $565.3 million for 2007, an improvement of 49 percent over the 2006 net loss of $1.1 billion. For the fourth quarter 2007 the net loss was $166.2 million, as compared with the fourth quarter 2006 net loss of $245.6 million.
The adjusted loss from operations for 2007 improved to $327.4 million, as compared to the adjusted loss from operations of $513.1 million in 2006. For the fourth quarter 2007, the adjusted loss from operations was $107.2 million, an improvement of 36 percent, compared with the $166.8 million adjusted loss from operations in the fourth quarter 2006.
“In 2007, Sirius achieved our financial goals and solidified our position as one of the fastest growing media companies in the world,” said Mel Karmazin, Sirius CEO, in a prepared statement. “Revenue grew 45 percent to $922.1 million, driven by 4.2 million gross subscriber additions — an annual record for satellite radio. More importantly, Sirius demonstrated positive operating leverage in the business through solid cost control by limiting growth in total expenses, excluding non-cash items, to under 9 percent for the year. Sirius achieved positive free-cash flow for the second half of the year and $75.9 million in positive free-cash flow for the fourth quarter 2007.”
He added, “The pending merger with XM will offer unprecedented choice for consumers and create tremendous value for stockholders. We have made a very strong case for the merger to the government, received broad support from leading organizations and prominent individuals, and we look forward to a fast positive ruling from the government.”
Sirius ended 2007 with 8,321,785 subscribers, up 38 percent from 6,024,555 subscribers at the end of 2006. Retail subscribers increased 15 percent in 2007 to 4,640,709, from 4,041,826 at the end of 2006. OEM subscribers increased 87 percent in 2007 to 3,665,632, from 1,959,009 at the end of 2006. During the fourth quarter 2007 Sirius added 654,309 net subscribers. The company quoted the NPD Group, which reportedly said it achieved a 68 percent share of aftermarket satellite radio sales, its highest ever share. — Steve Smith