Sirius XM Radio Updates Forecast, Details 'Best of Both' Service

Authored by Mark Hefflinger on September 9, 2008 - 9:41am.

New York - Sirius XM Radio (NASD: SIRI) on Tuesday provided an update on its standing post-merger, projecting it will end 2008 with 19.5 million and 2009 with 21.5 million subscribers, with revenue expected to come in at $2.4 billion this year and $2.7 billion in 2009.

As for earnings, the company expects to post a $350 million loss this year before rebounding to a gain of $300 million in 2009.

The company also said it now expects the merger to bring $425 million in savings, compared with a previous estimate of $400 million.

"We have made great strides over the last six weeks and continue to make progress integrating the company and delivering on our promises to customers and stockholders," said Mel Karmazin, CEO of Sirius XM Radio.

Finally, the company announced the line-up for its new "Best of Both" service, which will allow XM and Sirius subscribers to keep their current programs, but for $16.99 per month also gain access to select programs from the other service.

XM subscribers will gain access to Howard Stern, Martha Stewart, Playboy, NFL and NASCAR radio programming, while Sirius subscribers will be able to listen to Oprah, Opie and Anthony, Bob Edwards, NBA, NHL, PGA and college sports broadcasts.