SIRIUS is the only satellite radio service bringing listeners over 120 channels of the best music, sports and entertainment coast-to-coast. SIRIUS offers 65 channels of 100% commercial-free music, along with more than 55 channels of world-class sports, news, information, entertainment, traffic and weather channels for a monthly subscription fee of $12.95. SIRIUS delivers uncompromised music in virtually every genre 24 hours a day.
SIRIUS Satellite Radio
today announced strong third quarter financial and operating
results, driven by subscriber growth in its retail and automotive OEM
distribution channels, and continued demand for its superior programming.
As of September 30, 2005, SIRIUS had 2,173,920 subscribers. The third
quarter subscriber figure reflects net additions of 359,294 subscribers, a 97%
increase over the year-ago figure of 181,948 net subscriber additions.
The company raised its year-end 2005 subscriber guidance to over 3
million, and reaffirmed its previous guidance on all other key metrics.
SIRIUS expects its subscriber growth will be driven by traditionally strong
consumer demand in the fourth quarter, and by SIRIUS’ exclusive programming as
well as the continued appeal of its commercial-free music.
“The third quarter represented another quarter of solid execution by our
management team,” said Mel Karmazin, CEO of SIRIUS. “We continued to gain
retail and overall market share in the quarter, while meeting our guidance for
third quarter net subscriber additions. As we move into the important fourth
quarter, we believe that our mix of innovative and competitively-priced
products at retail, combined with more SIRIUS factory installations by our
automotive partners, will yield strong year-end results, and we are raising
our subscriber guidance to over 3 million to reflect this expectation.
The
introduction of Martha Stewart Living Radio and the anticipation of Howard
Stern’s arrival in January 2006 should also generate unprecedented excitement
for our service.”
SIRIUS reported revenue of $66.8 million for the third quarter of 2005, a
250% increase over the $19.1 million reported for the year-ago quarter.
Average monthly churn for the third quarter and year to date was 1.8% and
1.5%, respectively. Average monthly churn is expected to be approximately
1.5% for the full year.
The company reported subscriber acquisition costs per gross
subscriber addition of $149 for the third quarter of 2005, a 35% improvement
over SAC per gross subscriber addition of $229 in the year-ago quarter.
SIRIUS continues to project SAC per gross subscriber addition of under $145
for the year.
During the third quarter of 2005, SIRIUS added 209,920 net subscribers
from its retail channel, a 56% increase over 134,442 retail net subscriber
additions in the year-ago quarter. The company also added 149,000 net
subscribers from its automotive OEM channel, a 230% increase over 45,196 net
subscriber additions from that channel in the third quarter of 2004.
SIRIUS reported a net loss of ($180.4) million, or ($0.14) per share, for
the third quarter of 2005 compared with a net loss of ($169.4) million, or
($0.14) per share, for the third quarter of 2004
