NEW YORK – Sirius Satellite Radio announced Wednesday that its total revenue increased 150% year-over-year to $167.1 million for third quarter 2006, reflecting nearly three million new subscribers added in the last twelve months.
The company reported a 23% cost improvement per gross subscriber addition from the year-ago quarter, while Sirius’ third quarter adjusted loss from operations decreased 21% year-over-year.
Sirius ended the third quarter with 5,119,308 subscribers, 135% above third quarter 2005 subscribers of 2,173,920. During the third quarter of 2006, it added 441,101 net subscribers, a 23% increase over third quarter 2005.
For the fourth consecutive quarter, according to a company release, Sirius led the satellite radio industry in net subscriber additions, capturing a record 61% of total satellite radio net additions in the third quarter, says the press release. Sirius added approximately 205,900 net subscribers from its retail channel and approximately 236,500 net subscribers from its automotive OEM channel during third quarter 2006.
The company also said that its losses in the quarter included $4.4 million on its newly launched Canadian service, of which it owns 20%.
“Sirius continues to focus on excellence in programming and solid execution of our business plan,” said Mel Karmazin, CEO of Sirius. “Sirius has never been in a stronger position heading into the key fourth quarter holiday season. We are well prepared to meet fourth quarter demand and remain focused on achieving positive free cash flow.”
The company reported a net loss of $162.9 million, or $0.12 per share, for the third quarter of 2006 compared with a net loss of $180.4 million last year, or $0.14 per share, for the third quarter of 2005.
Among its new initiatives: the worldwide launch of Sirius Internet Radio (SIR), a CD-quality, Internet version of the satellite radio service, and the launch of Stiletto 100, the industry’s first portable satellite radio with WiFi capabilities.
Sirius nearly doubled its OEM subscriber base during the nine months of 2006, reflecting increasing momentum from its exclusive automotive OEM arrangements.
