Sirius Satellite Radio has raised its revenue and subscriber targets for 2005 as the company reported improved revenue and customer churn in the first quarter.
Revenue for New York-based Sirius was $43.2 million in the 2005 first quarter, closed March 31, up from revenue of $9.3 million in the 2004 first quarter. Sirius attributed the growth to robust retail sales and increased business through the company’s automotive distribution channels.
Sirius added 305,437 net new subscribers during the 2005 first quarter and ended the period with 1.4 million subscribers. The company’s average monthly churn of 1.3 percent during the quarter was its best mark since the launch of the service in July 2002, the company said. Subscriber acquisition costs was $190 per gross subscriber in the 2005 first quarter, down from $248 in the same period a year ago.
Sirius increased its revenue target for 2005 from $210 million to $215 million and expects to close 2005 with 2.7 million subscribers, up from previous estimates of 2.5 million. The company continues to expect costs per gross subscriber addition to fall to below $145 for 2005.
The subscriber growth was the main driver of an increased loss for Sirius, the company said. Sirius lost $193.6 million in the 2005 first quarter, up from a loss of $144.1 million in the 2004 first quarter. Subscriber acquisition costs jumped $40.1 million in that period of time, while programming and content expense grew $15.8 million, and sales and marketing expenses increased $11 million.
