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Sirius XM Posts Q1 Profit

Cites additional subscribers as auto industry begins to recover

Sirius XM Radio this week reported a profit for the first quarter, thanks to additional subscribers coming in following a recovery in auto sales.

“The continuing recovery of the automotive sector and expanding signs of increased consumer spending are encouraging signs for the company’s growth prospects,” stated Chief Executive Officer Mel Karmazin.

Sirius posted earnings of $41.6 million, compared with a loss of $238.8 million a year ago. Last year’s results included a charge of $186.2 million related to preferred stock issued when Liberty Media Corp. rescued Sirius from a possible bankruptcy filing last February.

Analysts surveyed by Thomson Reuters had expected Sirius to break even, the Associated Press reported.

Revenue in the most recent quarter rose 13 percent to $663.8 million but was slightly below analysts’ $671.3 million forecast.

The company added 171,441 net subscribers during the period to end the quarter with more than 18.9 million subscribers. A year ago it had 18.6 million subscribers.