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Sirius Satellite Radio 1Q loss shrinks from year ago when it recorded stock expenses to Stern

Sirius Satellite Radio 1Q loss shrinks from year ago when it recorded stock expenses to Stern

Sirius Satellite Radio Inc. on Tuesday reported a narrower loss for its first quarter compared with the same period a year ago, when it recorded $225 million in expenses for stock paid to shock jock Howard Stern.
Net loss narrowed to $144.7 million (euro106.36 million) or 10 cents per share versus $458.5 million or 33 cents per share in the same period a year ago, slightly better than the 11 cents per share that analysts were expecting.
Excluding the Stern payout and other stock-based compensation, the results came in at 8 cents per share versus 13 cents per share in the year-ago period.
Revenue rose 61 percent to $204 million (euro149.94 million) from $126.7 million, but was below the estimates of $212 million recorded by analysts polled by Thomson Financial.
Sirius, which has reached an agreement to acquire its rival XM Satellite Radio Holdings Inc., gained 556,490 net subscribers in the first quarter, ending the period with 6.6 million subscribers.
XM, which reported earnings April 26, said it ended the quarter with 7.9 million subscribers and has since then topped the 8 million mark.
Sirius' costs for adding each subscriber, a figure closely watched by investors, decreased to $104 (euro76) in the first quarter from $113 in the same period a year ago, which the company attributed to lower commission and subsidy rates, as the costs for manufacturing radio units declined.
However, another key figure, average monthly churn, increased to 2.3 percent from 1.8 percent, representing the percentage of subscribers that drop out every month. The higher the churn rate, the more subscribers must be added in order to continue growing the customer base.
Sirius stood by its previous guidance of reaching $1 billion (euro740 million) in revenues this year, as well as more than 8 million subscribers by the end of the year, and an average monthly churn rate of between 2.2 and 2.4 percent. It also said it expected subscriber acquisition costs to be about $95 (euro69.83).


Updated : 2021-03-08 06:44 GMT+08:00