SIRIUS Satellite Radio reported a net loss of $193.6 million ($0.15) per share on revenue of $43.2 million for the first quarter of 2005 compared with a net loss of $144.1 million ($0.12 per share) on revenue of $9.3 million for the first quarter of 2004. The firm’s subscriber base grew by 312% from 351,663 to 1,448,695 while revenue was up by 365%.
Chief executive officer attributed the gain in subscribers to “robust retail sales and rapidly expanding sales in (SIRIUS’) automotive distribution channel.” He noted that during Q1, Ford, BMW, Mercedes-Benz, Volvo, Land Rover, Jaguar and Volkswagen announced expanded programs for installations of SIRIUS radios. Ford announced plans to include SIRIUS as a factory-installed option in up to 21 of its models through the 2007 model year, and expects to generate up to one million SIRIUS subscribers by mid-calendar year 2007. DaimlerChrysler expects its SIRIUS factory installation program to produce more than 500,000 subscribers over the 2005 and 2006 model years. Mitsubishi announced an exclusive agreement to install SIRIUS in various models beginning this fall.
Karmazin said SIRIUS now expects to have more than 2.7 million subscribers at year-end, up from previous guidance of more than 2.5 million. “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.”
