Sirius: $43 Million Revenue, $193 Million Loss in Q1

Sirius Satellite Radio reported revenue of $43.2 million and net loss of $193.6 million for the first quarter.
That compares to revenue of $9.3 million and a net loss of $144 million for the same period a year ago.
Sirius expects to report an adjusted loss from operations of about $510 million for the year, compared to previous estimates of $480 million, due to increased subscriber acquisition costs; also, its marketing expenses have increased as the company expands retail distribution. Advance payments under its NASCAR agreement also began in the quarter.
Subscriber acquisition costs per subscriber were $190 for the quarter; that compares to $52 per person reported by XM.
The company has 1.5 million subscribers, with 305,437 added in the first quarter. Sirius is raising its year-end subscriber estimate to more than 2.7 million based on what it sees as strong growth trends.
“Our strong results in the automotive channel are increasingly contributing to our subscriber growth, and we expect this momentum to build even further as more factory programs begin this year,” stated CEO Mel Karmazin. “Plus, with the addition of Martha Stewart Living Radio later this year, the arrival of Howard Stern next January and NASCAR in 2007, we believe demand for our service will continue to increase as we approach the launch of this exclusive content.”
Programming expenses for the company increased by $15.8 million in Q1, to $24.5 million, compared to $8.7 million for the same period a year ago. The company cited the acquisition of NFL, NBA and college sports for the rise.
Sirius says its churn rate continues to be low at an average of 1.3% during Q1.
The company now says it should reach cash flow break-even in 2007.