Sirius Satellite Radio announced their third quarter 2007 results this morning and the numbers show that the business is scaling. Narrowing losses, tighter control over costs, improved revenue, and a positive outlook going forward are beginning to demonstrate that the business model can provide for a very profitable business. More detail will become available when the quarterlies are filed with the SEC, but the call provided the nuts and bolts of what is a very good quarter.
POINTS TO NOTE:
Revenue came in at nearly $242,000,000. This represents a 45% increase over the same period last year, and now represents an annualized rate of nearly $1 Billion.
SUBSCRIBER GROWTH IMPROVING
For Q3 2007 Sirius added 524,938 NET subscribers, a record for a third quarter for Sirius. The bulk of those subscribers came from the OEM channel, as that has been the primary driver for subscriptions throughout 2007. Of the net, 64,101 subscribers came in the retail channel, and 460,837 came from the OEM channel.
Sirius reported a loss of 8 cents per share. The $120 Million loss was 26% better than the same period last year More importantly, the loss from operations saw an improvement of 32%, narrowing to ($56.9 Million) from ($83.2 Million).
Sirius maintained guidance across the board. A more detailed look at the numbers will come when the quarterlies are filed.
Position - Long Sirius, Long XM