Good news for all of you stockholders today as Sirius reported a loss of $0.12 per share, for the third quarter compared with a loss of $0.14 per share, for the same period the previous year. The rest of the numbers have also improved quite a bit as revenue increased 150% year-over-year to $167.1 million, cost to acquire a subscriber dropped 23% year-over-year, and automakers significantly increased installation rates. Sirius stated that the fourth quarter of 2006 could be the company's first ever positive free cash flow quarter.
"SIRIUS continues to focus on excellence in programming and solid execution of our business plan," said Mel Karmazin, CEO of SIRIUS. "Over the last year, we generated $100 million in new revenue, increased our share of satellite radio net subscriber additions by 24 percentage points and reduced our SAC per gross addition by 23%. SIRIUS has never been in a stronger position heading into the key fourth quarter holiday season, with exciting new products, compelling programming, and strong relationships with our retail and exclusive OEM partners. We are well prepared to meet fourth quarter demand and remain focused on achieving positive free cash flow."
With all of this good news, it is hard to understand all of the constant nay saying. I am not sure if the persistent hammering from the “free FM” PR people are the reason for the widespread bashing of satellite radio but, I think it’s time for analysts and reporters to wake up. Satellite radio has arrived, those that listen love it, and it’s not going anywhere.