Sirius XM Holdings Inc (SIRI)

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Sirius XM 3Q Loss Widens On $4.8B Goodwill Write-Down
Monday 11/10/2008 5:19 PM ET - Dow Jones News

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Symbol Last %Chg
SIRI 0.27 3.85%
As of 4:00 PM ET 11/10/08



DOW JONES NEWSWIRES

Sirius XM Radio Inc.'s (SIRI) third-quarter net loss widened on a $4.8 billion write-down of goodwill.
"Sirius XM third-quarter results demonstrate strong revenue growth, solid cost control and, most importantly, a clear path to positive cash flow," said Chief Executive Mel Karmazin. "In the first 60 days following the merger, Sirius XM is operationally very close to break-even."
This is the first quarter that Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., which merged in late July, are posting results as a combined company. The results include two months of XM's results.
It reported a net loss of $4.88 billion, or $1.93 a share, compared with a net loss of $120.1 million, or 8 cents a share, a year earlier.
Revenue more than doubled to $488.4 million.
Analysts' estimates were for a loss of 9 cents a share on revenue of $587 million, according to a poll by Thomson Reuters.
Total subscribers climbed 17% to 18.9 million at the end of the quarter, with 344,100 net new subscribers. Last week, the company said it expects to end 2008 with 19.1 million subscribers, down from the 19.5 million forecast in September, noting that the economic slowdown has hurt subscriber growth.
Churn, or the rate of monthly customer losses, rose slightly to 1.7% from 1.6% for self-pay customers.
Average revenue per subscriber, an important industry measure, fell 2.6% to $10.47, while costs associated with adding new subscribers declined 14% to $74.
Sirius XM, which offers 300 channels, in September raised its predicted cost savings from the merger by $25 million to $425 million for next year.
Sirius XM also is talking to several financial institutions about financing to replace its 2.5% Convertible Notes due 2009.
Sirius XM's shares were at 27 cents, up 1.1%, in after-hours trading.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; [e-mail]

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(END) Dow Jones Newswires
11-10-08 1719ET
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