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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: DaveMG who wrote (2203)	2/17/2006 11:50:28 AM
From: sixty2nds	Respond to of 3386

10:37 ET Sirius Satellite (SIRI): 5.47 -0.18: Sirius Satellite Radio's loss widened in the fourth quarter, driven by higher subscriber acquisition costs and increased programming and content expenses. The company, which added "shock jock" Howard Stern to it programming line-up in January, said it lost $311.4 million, or ($0.23) per share, compared with a loss of $261.9 million, or ($0.21) per share, in the year ago period. Revenue more than tripled to $80 million during the period from $25.2 million a year earlier. According to Reuters Estimates, analysts were expecting a loss of ($0.22) per share on revenue of $74.07 million. The wider loss for the quarter was driven by a 124% jump in subscriber acquisition costs, as well as a 36% increase in programming and content expenses, to support a 143% increase in gross subscriber additions. Sirius said it added a total of 1.27 million subscribers during the fourth quarter and ended the year with approximately 3.32 million subscribers. That is a 190% increase in total subscribers from a year earlier. Average monthly churn, or the number of subscribers who cancelled their service, was consistent with a year ago at 1.5%. Sirius said it expects to have over 6 million subscribers by the end of the year, and a monthly churn rate of approximately 1.8% for 2006. It also expects subscriber acquisition costs to come in near $110 for the full year 2006, compared with $113 in 2005, and to decline further in 2007. Full-year revenues are anticipated to be about $600 million. In similar fashion, rival XM Satellite Radio (XMSR) reported a wider than expected fourth quarter loss earlier this week on higher costs for acquiring new subscribers. Both Sirius and XM Satellite have been aggressively investing in new programming and marketing and promotion to bolster their subscriber base and expand their business. However, those investments have largely curtailed expectations for future profit growth. Despite solid subscriber growth, we continue to believe the lack of earnings visibility hinders the current investment prospects and would remain on the sidelines with both stocks. --Richard Jahnke, Briefing.com