Sirius-XM ups subs and revenues

Sirius-XM might be financially stretched as it puts in place new financing for 2009 obligations, but there’s little to worry about in its actual numbers, with the merged company’s results exceeding most analysts’ expectations.

Sirius-XM reported what CEO Mel Karmazin described as a strong third quarter, which included the first two months since the July 28 merger between the Sirius and XM businesses.

On a pro forma basis Sirius-XM saw revenues rise 16% to $613m and subscribers grow 17% to 18.9m. "We have provided new long term financial and operating projections based upon slower auto production and greater cost savings and we now anticipate positive free cash flow of $1 billion in 2012."

Sirius XM's pro forma net loss was $217m, or $0.09 per share, for the third quarter of 2008, compared to a pro forma net loss of $265.5 million, or $0.18 per share, in the third quarter 2007.

The company added 344,100 net subs in the quarter, down from 839,750 a year earlier. Churn was up slightly at 1.7% a month (1.6% a month a year ago) while ARPU also slipped a tad from $10.75 this time last year to $10.47 in Q3/2008.