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Sirius cuts losses before XM merger

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Sirius XM Radio on Thursday announced that its Sirius side posted a 25 percent jump in second-quarter revenue and pared back its net loss as it closed its final quarter as a standalone company.

Revenues for Sirius Satellite Radio, which closed its long-awaited merger with XM Satellite Radio after the quarter ended , rose to $283 million for the three-month period ending June 30, up from $226.4 million a year earlier.

"Despite a tough economy and weak auto sales, gross additions set a new second-quarter record. In the second quarter, both revenue and subscribers grew 25 percent, compared with last year," CEO Mel Karmazin said in a statement, adding that the company's costs, meanwhile, remained essentially flat and aided in reducing its net loss.

Sirius posted a net loss of nearly $84 million, compared with a loss of $134.1 million a year ago.

With the merger now complete, the combined company is expected to generate $400 million in cost savings next year and annualized revenues in excess of $2.4 billion.

"The combined company now has an annualized revenue run rate of over $2.4 billion, making Sirius XM Radio one of the fastest-growing and best positioned subscription media businesses," Karmazin said. "With rapid integration efforts under way, we started realizing synergies on day 1."

17.11.08 08:54

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