Sirius XM Narrows Loss, Gains Subscribers

The satellite radio company reported a narrower pro forma fourth-quarter loss as revenue gained and subscribers rose.
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Sirius XM Radio

(SIRI) - Get Report

reported a pro forma fourth-quarter loss of $248.5 million, narrower than a pro forma loss of $405 million a year earlier as revenue gained and subscribers rose.

On a GAAP basis, the loss in the fourth quarter was $245.8 million, or 8 cents a share.

Adjusted fourth-quarter income from operations on a pro forma basis was $31.8 million, compared with an adjusted loss from operations of $224.1 million in the fourth quarter of 2007.

Revenue in the quarter on a pro forma basis rose 16% to $644 million.

Subscribers to the company's satellite radio service at the end of the 2008 rose 10% to 19 million subscribers from 17.3 million in 2007. The company added 82,945 net new subscribers in the fourth quarter, compared with 1.1 million net additions a year earlier.

The fourth quarter was the company's first full quarter of combined operations following Sirius's acquisition in July 2008 of XM Satellite Radio.

Last week, Sirius said it closed a $530 million investment deal with Liberty Media and extended the maturity of certain debt coming due in two months, to 2010.

The completion of the deals gives Sirius XM about a year's breathing room. While the satellite radio's service is popular, it has been struggling under a heavy debt load. It faced a bankruptcy filing if it couldn't refinance or pay off debt coming due this year.

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