New York – Sirius Satellite Radio said it nearly doubled its number of subscribers by mid-August, but at the same time Sirius posted a greater loss for the quarter and reported in an SEC filing that bankruptcy protection is an option if it does not get further funding by next year.
The company said that from the end of June to Aug. 11 it had 6,510 subscribers, compared to 3,347 subscribers on June 30. Last week company president Joe Clayton estimated Sirius will have about 75,000 subscribers for the year as product and advertising increases this fall. He added that the current number of subscribers met expectations given ‘limited product availability and minimal advertising’ during the quarter.
On the financial side, Sirius reported $70,000 in revenue during the second quarter ended June 30, but had a $67.3 million loss in Earnings Before Interest, Taxes, Depreciation, Amortization and Non-Cash Compensation (EBITDA), versus a loss of $32.8 million for the same period last year. Net loss for the quarter was $113.3 million, up from $62.1 million in the year-ago period.
Sirius reported a cash position of $326.9 million on June 30 and said it had enough cash to fund the company into the second quarter of 2003. But in its SEC filing Sirius reported it was reviewing options if more funding is not available by then, including asking for bankruptcy protection, a cash-for-equity swap with creditors, or sale of the company.
