Capricorne
2008-02-27 14:30:01 UTC
From The Washington Post:
Sirius Says It Could Do Without XM
By Cecilia Kang
Washington Post Staff Writer
Wednesday, February 27, 2008; D03
Sirius Satellite Radio said yesterday that it gained subscribers in the
fourth quarter and lost less money, signs that its business is
improving even as the company's merger with XM Satellite Radio Holdings
remains stuck in a regulatory limbo more than a year after it was
proposed.
Though Sirius remains hopeful that the merger will be approved by the
Justice Department and the Federal Communications Commission, chief
executive Mel Karmazin said yesterday that the company could survive
without it.
"In the unlikely scenario of a merger not being approved, we believe we
are fully funded. We believe we are going to become a profitable
company on a stand-alone basis," Karmazin said during a conference call
with analysts.
New York-based Sirius reported a loss of $166.2 million (11 cents per
share) in the fourth quarter, compared with a loss of $245.6 million
(17 cents) in the fourth quarter of 2006. Revenue rose 29 percent, to
$249.8 million. Subscriptions rose to 8.3 million, up from 6 million a
year earlier.
For all of 2007, Sirius lost $565.3 million (39 cents) compared to a
loss of $1.1 billion (79 cents) in 2006. Revenue rose 45 percent, to
$922.1 million.
XM, which is based in the District, is scheduled to report
fourth-quarter results tomorrow.
Despite the improvement in Sirius's financial performance in the
quarter, Karmazin said the prolonged review of the proposed merger is
hurting it.
Shareholders of both companies voted in favor of the merger in
November, and government action had been predicted by the end of last
year. But the protracted review, which is closed to the public, has
prompted speculation that the agencies are concerned about creating a
monopoly.
Sirius and XM, the only two satellite radio companies, have argued that
they compete with many entertainment sources, including iPods and
terrestrial radio.
FCC Chairman Kevin J. Martin has said he expects the agency to decide
on the merger by the end of the first quarter.
As the companies await word, customers may be lost in the process,
Karmazin said.
"The merger is creating a lot of confusion," he said. "Our own secret
shoppers have gone in and have gotten misinformation from salespeople
at retail. It's not malicious, but they are not exactly aware of what
is going on," he said.
Sirius shares rose 1 cent yesterday, to $3.05."
I have both Sirius and XM at home. I used to listen mostly to XM
because the Sirius signal was poor, even with an outside antenna. But
this week, surprise ! the Sirius signal is 3 bars all the time. I
checked the antenna signal on the menu, and it is 10 on 10 terrestrial
and 3 on sat all the time. So i guess they finally installed a
repeater near my place. So now, I am re-discovering Sirius, at last
after 2 and a half years. ^^
Sirius Says It Could Do Without XM
By Cecilia Kang
Washington Post Staff Writer
Wednesday, February 27, 2008; D03
Sirius Satellite Radio said yesterday that it gained subscribers in the
fourth quarter and lost less money, signs that its business is
improving even as the company's merger with XM Satellite Radio Holdings
remains stuck in a regulatory limbo more than a year after it was
proposed.
Though Sirius remains hopeful that the merger will be approved by the
Justice Department and the Federal Communications Commission, chief
executive Mel Karmazin said yesterday that the company could survive
without it.
"In the unlikely scenario of a merger not being approved, we believe we
are fully funded. We believe we are going to become a profitable
company on a stand-alone basis," Karmazin said during a conference call
with analysts.
New York-based Sirius reported a loss of $166.2 million (11 cents per
share) in the fourth quarter, compared with a loss of $245.6 million
(17 cents) in the fourth quarter of 2006. Revenue rose 29 percent, to
$249.8 million. Subscriptions rose to 8.3 million, up from 6 million a
year earlier.
For all of 2007, Sirius lost $565.3 million (39 cents) compared to a
loss of $1.1 billion (79 cents) in 2006. Revenue rose 45 percent, to
$922.1 million.
XM, which is based in the District, is scheduled to report
fourth-quarter results tomorrow.
Despite the improvement in Sirius's financial performance in the
quarter, Karmazin said the prolonged review of the proposed merger is
hurting it.
Shareholders of both companies voted in favor of the merger in
November, and government action had been predicted by the end of last
year. But the protracted review, which is closed to the public, has
prompted speculation that the agencies are concerned about creating a
monopoly.
Sirius and XM, the only two satellite radio companies, have argued that
they compete with many entertainment sources, including iPods and
terrestrial radio.
FCC Chairman Kevin J. Martin has said he expects the agency to decide
on the merger by the end of the first quarter.
As the companies await word, customers may be lost in the process,
Karmazin said.
"The merger is creating a lot of confusion," he said. "Our own secret
shoppers have gone in and have gotten misinformation from salespeople
at retail. It's not malicious, but they are not exactly aware of what
is going on," he said.
Sirius shares rose 1 cent yesterday, to $3.05."
I have both Sirius and XM at home. I used to listen mostly to XM
because the Sirius signal was poor, even with an outside antenna. But
this week, surprise ! the Sirius signal is 3 bars all the time. I
checked the antenna signal on the menu, and it is 10 on 10 terrestrial
and 3 on sat all the time. So i guess they finally installed a
repeater near my place. So now, I am re-discovering Sirius, at last
after 2 and a half years. ^^