Sirius grew revenues; Still waiting for DOJ/FCC


Sirius Satellite Radio reported that it ended 2007 with 8.3 million subscribers, up 38% for the year. Revenues for the year grew 45% to 922.1 million and Q4 revenues increased 29% to 249.8 million. The company’s net loss improved to 565.3 million for the year, or 39 cents per share, compared to a loss of 1.1 billion, or 79 cents per share the previous year. But the big question is whether the US Department of Justice Antitrust Division and the FCC will OK the company’s long-pending merger with rival XM Satellite Radio. Sirius CEO Mel Karmazin told analysts there was nothing new to tell them and that he is waiting by the phone for a call from DOJ. The long delay in getting an answer from regulators prompted one analyst to wonder about the upcoming March 1st drop dead date when either company has the option to walk away.

“I think the way you ought to think about it is that you should assume that both companies would be having a board meeting prior to the March 1st drop dead date and after the boards have met that you will hear the result of that,” Karmazin responded. He also insisted that Sirius is prepared to move ahead as a standalone company if the merger does not win approval. “In the unlikely scenario of the merger not being approved, we believe as [CFO] David [Frear] said that we are fully funded that we believe that we are going to become a profitable company on a standalone basis,” Karmazin said. With the XM merger still in limbo, Sirius passed on trying to give Wall Street any guidance for 2008.