First Quarter Results Are In & SIRI Q1 CC Highlights
Stay tuned to this thread for the best place to catch all of the action of Sirius’ First Quarter Conference Call. The CC will take place on Sirius’ channel 125, and online at Sirius’ corporate website. The Call starts at 8am, with the earnings report out shortly beforehand. We will keep you updated with all the news Sirius reports throughout the morning. You can discuss the Conference Call with others in the SBS Chat Room.
First with the earnings news of the morning:
Sirius’s earnings report can be viewed in full here.
Highlights:
-4,077,747 subscribers - 761,187+ net increase from December 31, 2005.
-Revenue up to $126 million
-SAC(Subscriber Acquisition Costs) was $113 per new sub for the first quarter.
-Loss (.33)/share or $452 million, but includes equity charges of (.20)/share or approx. $270 million, making the GAAP net loss $182 million, or (.12)/share.
-Guidance Raised to 6.2 million subs by year end, up from 6.0 million
-960,610 Total(gross) subscribers added in the first quarter.
-Churn 1.8%
-CPGA(Subscriber Acquisition Costs + marketing expenses) approximately $154.52
-Sirius has a 57.22% marketshare for net subscribers in the First Quarter!!
-ARPU(How much money they get from an average subscription is $10.80, up slightly from $10.72 in 1Q05.
Conference Call Highlights, updated live(the FIRST Sirius site to ever do so!)
-Conference Call started @ 8:03a
-Advertising Revenue gave $.65/month to sub revenue: almost double that of XM
-Churn number is ‘all-in’, unlike XM’s, who excludes OEM promotional periods ending.
-Stressed that Sirius will not run ads on the music stations
-First Live wearable this summer, as mentioned in the last conference call
-Howard being streamed before Father’s Day
-Sirius Canada growing faster than anticipated
-New PNPs coming in time for Father’s Day, and later in the summer
-New features and versions
-Sportster4 coming in late may!
-Universal Dock, as we have mentioned before, is happening. allow one docking station type for most PNPs
-Expanded memory, buy button, MP3 functionality, and more on the Live portable
-Ads and square foot product placement is increasing in most major retailers for satellite radio
-Sirius available on just about all DCX models, with 30% of models to get Sirius this year for Chrysler, and 50% of Mercedes cars. Many mercedes brands have the P1 premium package with Sirius standard in it. Penetration for the P1 package currently runs 90%.
-Sirius available as Port installed option on many Toyota models(Ed: many Toyota options are Port and not Factory), and more Toyotas coming shortly
-400k people have opted in to Playboy so far!
-4th quarter will be strongest quarter for sports fans joining
-Rolling Stones Radio extended to the end of 2006!
-Chinese channel still coming, but not yet available
-Attracting many blue chip advertisers, such as Verizon and Subaru.
-Unique Programing saves money on marketing
-They have $715 million in cash, cash equivalents, and marketable securities - all the money they need
-Someone on the call is as sick as I am(lots of coughs)
-Developing chipsets in cell phones, but it is aways away for researching what they can get from cell phone users.
-Nothing to say about price increases, but they are the premium priced service and they will be coming sometime in the future
-Not enough history on a solid OEM take rate(the percent of users who buy a new car, and sub to Sirius after the promo period is over) yet, but Mel says look to XM’s number(about 56-58%) for an average take rate until they say to look higher or lower.
-approximately 50% share of Toyota market for 2006, don’t know the actual data.
-Another brand says that when the customer has a choice, Sirius has skyrocketed to 60% share.
-SAC will slowly build over the first three quarters, then decline in Q4
-Mel thinks Gary Parsons, senior exec. at XM did a good job testifying during hearings for the Perform Act
-Howard might be streamed on Howardstern.com as well for Sirius subs
-1st quarter advertising: 6% of revenue. First quarter is traditionally the lowest quarter for ad revenue in the tv/radio industry
-Opie & Anthony going to FM: “Good deal for Opie & Anthony”. Feels Sirius is in the business of getting subscribers to satellite radio, not syndicating exclusive content.
-continuing to invest money in repeaters, deciding where they want the repeaters to go
-May or may not have a licensing agreement with the record companies for future wearables
-Conference over @ 9:05a