Sirius Loss Narrows

Sirius SIRI said its fourth-quarter loss narrowed from year-ago levels.

The New York-based pay radio giant also said it won't provide cash flow guidance anymore as it prepares for a big merger with rival XM XMSR. The companies agreed last week to merge in a $4.57 billion deal.

For the quarter ended Dec. 31, Sirius lost $245 million, or 17 cents a share, compared with the year-ago loss of $311 million, or 23 cents a share. Revenue rose to $193 million from $80 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a 17-cent loss on revenue of $173 million.

The company posted positive free cash flow in the fourth quarter of 2006 of $30.4 million, as defined by the sum of net cash provided by or used in operating activities, capital expenditures and restricted and other investment activity.

Sirius said it expects 2007 revenue to approach $1 billion, in line with the $999 million Thomson target. The company expects to have more than 8 million subscribers at year-end, up from 6 million at the end of 2006, with an average monthly customer defection, or churn, rate of 2.2%-2.4%.