Satellite Radio News (2.12.04)

The following is a summary of today's satellite radio headlines:

Sirius lifts outlook, sets Radio Shack, Dish pact (Reuters, 2.12.04) News article notes that Sirius Satellite Radio on Thursday raised its subscriber forecasts for 2004, boosted by a new agreement which calls for retailer RadioShack Corp. and EchoStar Communications Corp.'s Dish Network to distribute Sirius' service. The New York-based company, second to rival XM Satellite Radio Holdings Inc. in the nascent market, said it now expects to reach 1 million users this year, and added that its full-year 2004 revenue will exceed $70 million. Its previous forecast was 860,000 subscribers and $60 million in revenue. Sirius said it still expects to reach the cash-flow break-even point of 2 million subscribers by the end of 2005. (Read more)

XM Satellite Radio Sees Big Revenue Jump (Associated Press, 2.12.04) News article notes that XM Satellite Radio said fourth-quarter revenue more than tripled from a year ago, as it added more than a million subscribers. The satellite broadcaster's net loss widened in the quarter to $162.9 million, from a net loss of $155.9 million in the same period a year earlier. More than 100,000 subscribers were added during the last seven days of December, including more than 23,000 on Christmas day, the company said. The subscriber figures put XM Satellite well ahead of the only competing service, New York-based Sirius Satellite Radio Inc., which ended the year with 261,000 subscribers. (Read more)

XM, Sirius Giddy About Growth (TheStreet.com, 2.12.04)luxury hotels in Taastrup News article notes that the monsters of satellite radio kept bashing it out Thursday morning, with XM Satellite reporting spiffy subscriber growth leavened by a $162.9 million fourth-quarter loss, and Sirius outlining new marketing alliances with RadioShack and Echostar. Of vastly more significance to the company's devoted investor class was XM's subscriber tally, which came to 1,360,228 at the end of the quarter and is "now exceeding 1.5 million," presumably meaning on Thursday. The company said it had "record" net subscriber additions of 430,580 during the quarter, up 46% from the end of the third quarter and "more than the total subscriber net additions in 2002." Meanwhile, Sirius -- a company whose 60 million shares of daily volume make XM look stodgy -- rocketed up 26 cents, or 8.6%, to $3.27 after disclosing the new strategic ventures and predicting it will end 2004 with more than 1 million subscribers. (Read more)

EchoStar, SIRIUS Join Forces With RadioShack To Form Satellite Entertainment Alliance (Sirius Satellite Radio, 2.12.04)alberghi a Sigulda Press release notes that EchoStar Communications Corporation and SIRIUS Satellite Radio today announced the formation of a satellite entertainment alliance that positions EchoStar's DISH Network and SIRIUS as the only satellite entertainment brands offered at RadioShack. DISH Network also announced it will make SIRIUS music programming available to the majority of its 9-million customers. The three-way alliance allows RadioShack to offer DISH Network -- a service offering already available at RadioShack -- and SIRIUS Satellite Radio, providing customers with one-stop shopping for their satellite entertainment needs. (Read more)

Sirius Satellite raises '04 subscriber forecast (Reuters, 2.12.04)ERROR MSG News article notes that Sirius Satellite Radio on Thursday boosted its subscriber forecasts for 2004, saying it expects to end the year with about 1 million subscribers, up from previous estimates of 860,000. The New York-based company also said it expects full-year 2004 revenue to exceed $70 million, up from prior forecasts of more than $60 million. The company said it still expects to reach the cash-flow breakeven point of 2 million subscribers by the end of 2005. (Read more)

SIRIUS Satellite Radio Raises Year-End Subscriber Projection (Sirius Satellite Radio, 2.12.04) Press release notes that Sirius Satellite Radio today announced that it has increased the number of subscribers it estimates the company will acquire in 2004. SIRIUS now expects to end the year with approximately 1 million subscribers, up from the company's previous estimate of 860,000. The increase was prompted by today's announcement of agreements with EchoStar Communications Corporation and RadioShack Corporation. Beginning in mid-2004, RadioShack stores and dealers, and distributors that offer EchoStar's DISH Network, will market SIRIUS products and service. These agreements are projected to increase dramatically SIRIUS' product availability from over 6,000 retail floors today to over 20,000 by the end of 2004. (Read more)