Sirius Hits 6 Million Subscribers and First Cash Flow Positive Quarter

Authored by Jay Baage on January 3, 2007 - 12:32pm.

New York – Sirius Satellite Radio announced today that it finished 2006 with 6.02 million subscribers, up 82% from the previous year. However, as late as December 4, Sirius lowered its subscriber guidance to between 5.9 and 6.1 million subscribers, down from a previous projection of more than 6.2 million subscribers. The reason given was slower-than-expected sales after Thanksgiving.

The stockmarket reacted to the positive news that Sirius reportedly achieved its first quarter of positive cash flow in Q4, in line with expectations. As a result, shares were up 8.5% on Wednesday in midday trading.

Sirius competitor XM Satellite Radio is expected to announce its year-end subscriber numbers above the low end of the company’s targeted range of 7.7 million to 7.9 million according to Goldman Sachs analyst Mark Wienkes.

Related Links:
http://biz.yahoo.com/prnews/070102/nytu107.html?.v=82 (Press Release)
Sirius Surges On Subscriber Results (Forbes)
http://www.sirius.com