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Analysts Cut Projected Subs., Earnings For Sirius

Analysts Cut Projected Subs., Earnings For Sirius

Equity analysts with the SoundView Technology Group have scaled back projected subscriber estimates for Sirius Satellite Radio, mainly because receiver partners are still ramping up product supplies, leading to product unavailability in some areas. SoundView has reduced its Q2 net subscriber estimate from 5,000 to 3,000 and year-end subscriber total from 100,000 to 78,000. It estimates a $900 million funding gap, and increased its projected 2002 EBITDA loss estimate by 5% from $283 million to $298 million and 2003 estimate by 17% from $255 million to $298 million.
“We worry there is a lack of brand awareness and the company will need to overspend to catch up” with rival XM, state the analysts in a report after noting what analysts see as limited marketing support so far for Sirius other than NASCAR sponsorships.
Sirius is confident it will have between 300,000 to 400,000 units in the retail chain by the end of the year.