Re: Sirius vs. XM satellite radio, which is better
From a financial standpoint, XM is in better shape with less overall debt, with a much better chance of long term survival, but both are running in the red and are quite a ways away from profitability. It still remains to be seen if these companies can be run profitably. They are spending lots on marketing and the development and distribution of the technology but will have to cut costs eventually. My guess is that XM definitely survives and SIRI has a fighting chance as well pending a stable economy with loyal debtholders.
As of March 31, 2004, XM Radio reported 1,681,903 subscribers. Three months later, they report 2.1 million customers, a growth of some 420,000 in just 3 months.
For first quarter 2004, XM reported record quarterly revenue of $43.0 million, increasing nearly 230 percent from $13.1 million in the first quarter 2003. They recorded a loss of some 145 million dollars excluding one time charges, so they have a LONG way to go before becoming profitable, but are growing fast.
For the first quarter of 2004, SIRIUS recognized total revenue of $9.3 million, compared to $1.6 million for the first quarter of 2003. SIRIUS reported a loss from operations of $(119.5) million for the first quarter of 2004, compared to a loss from operations of $(99.1) million for the first quarter of 2003.
As of March 31, 2004, SIRIUS had 351,663 subscribers. This represents a net subscriber addition of 90,602 during the quarter. Much more of their subscriber base is coming from auto deals where it comes preinstalled.
If we weren't in such a liquid enviornment with their stocks with the demand they have, I doubt they would make it, but I hope they do, because the technology is unique. Dish network subscribers have access to 60 SIRI channels and I must say I am enjoying listening to one of them right now on my television.