Sirius Revenues Soar, But Losses Widen

Sirius Satellite Radio reports that third-quarter revenues rose 250 percent.
The Washington, D.C., company said losses increased to $131.9 million, or 60 cents a share, from $118 million, or 59 cents a share, the same period last year. Revenues, however, increased 134 percent to $153 million from $65.4 million a year ago.

Revenues were boosted by a doubling of subscribers in the quarter to 5.04 million from 2.52 million last year. XM expects to exceed 6 million subscribers by the end of the year.

To drive subscriber growth XM and Sirius have spent heavily on programming. The latter company's new programming includes Martha Stewart Living Radio, and shock jock Howard Stern, who is set to start in January. Nascar coverage is scheduled to start in 2007.

This year was XM's inaugural season of exclusive Major League Baseball coverage. Under a 10-year agreement, the company becomes the exclusive satellite radio network for the National Hockey League, beginning with the 2007-2008 season.

In addition, both companies have pushed hard to have automakers factory-install radios supporting their services. Sirius has deals with DaimlerChrysler, BMW of North America and Ford Motor Co.; XM with General Motors, Honda, Toyota and Hyundai.

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