Sirius posts financial losses on heels of similar XM announcement

| 2/21/2006

Just days after its top competitor announced its own financial losses, Sirius Satellite Radio posted a 6 percent drop in its shares for the last quarter of 2005.

On Friday, Feb. 17, Sirius released its financial results, which included a net loss of $311.4 million, or $0.23 per share, for the fourth quarter of 2005, and a net loss of $863 million, or $0.65 per share, for the full year.

Although it posted a loss, the figures could just be growing pains for a company with a growing subscriber base and top-shelf celebrity roster, including shock jock Howard Stern. According to a press release, Sirius ended 2005 with 3,316,560 subscribers, reflecting a 190 percent increase in total subscribers for the year. Revenue for all of 2005 grew to $242.2 million, up 262 percent from $66.9 million in 2004.

Sirius’ disappointing financials arrived just two days after a similar announcement from its only rival in the U.S. market, XM Satellite Radio. According to a press release, XM posted an 8 percent drop in its share price, dropping the price of each share to $1.22.