US: Sirius XM reports solid profit; plans new infotainment services

Sirius XM subscribers inched to almost to 19 million, as the company reported a sold profit and growing sales for its first quarter ended March 31, 2010.

The satellite radio company also said it will offer additional services in the coming months, to join its current data services such as traffic, weather, gas and movie listings.

Sirius XM said its profits swung to $41.6 million compared with a loss of $52.6 million a year ago. And sales increased 13 percent to $663.8 million (GAAP).

Net subscriber additions for the quarter were 171,441—almost all from new cars as the company continued to shed retail subscribers.

Sirius XM CEO Mel Karmazin, reported, “We’re now back to growing subscribers at record levels…we’re making great strides in used car sales; levels are still low but its showing growth.” Used car sales will be important in the future, he reiterated.

At retail, the company shed about 306,000 subscribers and added over 460,000 OEM subscribers plus about 16,000 rental subscribers for total net additions of 171,441 for the quarter.

Sirius said its car partners are expecting 11.5 to 12 million vehicles to sell this year. Based on more conservative numbers than that, Sirius XM expects to add 500,000 subscribers for the year with $2.7 billion of pro forma revenue and $550 million of adjust income from operations.

Courtesy: CE Outlook.

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