Sirius Satellite radio Announced today that they finished the year with a total of 8,321,785 subscribers. This represents a fourth quarter addition of 654,309 subscribers, almost a 28% drop from the over 900,000 reported in Q4 of 2006. The company stated that the fully loaded churn came in at the 2.2% which was the low end of guidance, and that self paying churn remains a consistent 1.6%.
On cash flow Sirius indicated that they expect to report significantly greater positive free cash flow in 2007 than was reported in 2006. Thus, while subs offer a disappointing comparison, cash flow is trending better.
“SIRIUS’ subscriber base increased 38% in 2007, and our gross subscriber additions in 2007 were the highest in the history of satellite radio,” said Mel Karmazin, CEO for SIRIUS. “Our full year monthly subscriber self-pay churn rate was 1.6% and all-in churn was 2.2%, consistent with the low end of our guidance. Based upon preliminary financial data, we expect to report significantly greater positive free cash flow in the fourth quarter of 2007 than the company reported in the fourth quarter of 2006.”
Position – Long Sirius