This excerpt taken from the SIRI 8-K filed Nov 8, 2006.
SIRIUS REPORTS STRONG THIRD QUARTER RESULTS
NEW YORK November 8, 2006 SIRIUS Satellite Radio (NASDAQ:SIRI) today announced 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% improvement in SAC per gross subscriber addition from the year-ago quarter. Reflecting the companys improving business model and rapidly growing subscriber base, 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 ending subscribers of 2,173,920. During the third quarter of 2006, SIRIUS added 441,101 net subscribers, a 23% increase over third quarter 2005 net subscriber additions of 359,294. For the fourth consecutive quarter, SIRIUS led the satellite radio industry in net subscriber additions, capturing a record 61% of total satellite radio net additions in the third quarter. 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.
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.
Total revenue for the third quarter of 2006 increased to $167.1 million, up 150% from $66.8 million in the third quarter of 2005. Average monthly revenue per subscriber (or ARPU) was $11.17 in the third quarter of 2006 compared with $11.15 in the year-ago
third quarter. ARPU for the third quarter of 2006 included a $0.49 contribution from net advertising revenue compared with a $0.26 contribution from net advertising revenue in the year-ago third quarter. Average monthly churn was 2.0% in the third quarter of 2006 compared with 1.8% in the yearago period reflecting the impact of a 177% larger OEM subscriber base year-over-year. Full year 2006 monthly churn is expected to be 1.8%. SAC per gross subscriber addition was $114 for the third quarter of 2006, a 23% improvement over SAC per gross subscriber addition of $149 reported for third quarter 2005.
SIRIUS 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.