SIRIUS Reaffirms 2006 Subscriber Guidance
SIRIUS Satellite Radio today reaffirmed its guidance of more than 6.2 million subscribers by year-end 2006, representing an 87% increase over the company’s subscriber base at the end of 2005. The company continues to expect to add more than 2.8 million net subscribers during the year.
“We continue to experience dramatic growth and strong demand for our service across our retail and automotive OEM channels,” said Mel Karmazin, CEO of SIRIUS. “This supports our expectation that we will capture the majority of retail satellite radio net additions in 2006.”
According to The NPD Group*, SIRIUS achieved 54% retail market share in April 2006, compared to 38% retail market share in April 2005. For 2006 year-to-date, SIRIUS has achieved 58% retail market share, compared to 40% retail market share through April 2005. Also according to The NPD Group*, SIRIUS achieved 55% year-over-year retail unit growth in April 2006 and a 120% increase year-to-date.
SIRIUS’ first quarter of positive free cash flow, after capital expenditures, could be reached as early as the fourth quarter of 2006, and the company continues to expect to generate positive free cash flow for the full- year 2007.
Obviously an answer to XM’s cut of their guidance from 9 to 8.5 million subscribers. The reaffirming of these numbers is good news to Sirius shareholders.