Although Sirius Satellite Radio hit its subscriber goals in 2004 and has more than 1.24 million customers today, the company’s adjusted loss from operations increased by $126.1 million to a loss for the year of $456.2 million compared to a loss of $330.1 million reported in the previous year. The company said the increased loss was driven by $98.8 million in increased subscriber acquisition costs, $33.7 million in increased programming and content expenses, increased in sales and marketing, and general and administrative expenses. The overall net loss applicable to common shareholders for the year was $712.2 million compared to a net loss of $314.4 million in 2003.

And while the loss widened, the company did see a boost in its revenues. Sirius reported total revenues of $66.9 million in 2004, compared to $12.9 million in 2003. Sirius also offered a positive future outlook, raising its subscriber guidance in 2005 to more than 2.5 million from previous guidance of 2.3 million.

In related news, The New York Post reported Jan. 26 that Sirius is in talks with rival XM Satellite Radio for a possible merger, though officials in subsequent news reports denied that information.

Vintage Research analyst Alden Mahabir said in a Jan. 27 equity research report that, in addition to Sirius CEO Mel Karmazin “virtually” denying that talks between XM and Sirius over a merger have taken place, the satellite radio market is a licensed duopoly and “we doubt that nay regulatory body, the Federal Communications Commission or the Justice Department, would approve such a merger.” He also noted the industry outlook is “far from bleak today” and there would be little gained from a merger of the two companies.