Sirius XM Radio, the satellite radio pay service that is the radio home to Howard Stern, Oprah Winfrey, and Major League Baseball, is finally starting to show signs of upward growth, despite years of huge losses that caused many to question the company”s business model. After three straight quarters of posting a profit and steadily adding subscribers, the company forecasts 20.1 million subscribers; a figure slightly higher than its forecast from just two months ago.
Sirius XM”s performance is tied rather closely to auto sales, as the company estimates that 55% of light vehicles sold in the U.S. are equipped with Sirius XM devices, and the company correlates new subscriptions to new vehicle purchases.
CEO Mel Karmazin, a media industry icon, told investors last week that he was optimistic about the 2010 sales outlook, and adjusted his revenue estimate from $2.7 billion to $2.8 billion.
– By: Stephen Calogera
Source: Automotive News