SIRIUS XM Radio today provided an update on the
company’s guidance, a detailed breakdown of expected 2009 synergies,
and an outline of the company’s new “Best of Both” programming options.
Subscribers
– The company expects to end 2008 with approximately 19.5 million subscribers and to end 2009 with approximately 21.5 million
subscribers.
Revenue
–
SIRIUS XM expects to post pro forma revenue of approximately $2.4
billion in 2008 and to post revenue of approximately $2.7 billion in
2009.
Adjusted EBITDA
– SIRIUS XM expects a pro forma
adjusted EBITDA loss of approximately $350 million in 2008 and
reiterated its previously stated financial guidance of approximately
$300 million in positive adjusted EBITDA for 2009. Adjusted EBITDA is
net income / (loss) before interest and investment income, interest
expense (net of amounts capitalized), depreciation expense, and
non-cash stock compensation expense.
Synergies
– SIRIUS XM announced it is increasing its estimate of net synergies to $425 million in 2009.
–
The Company also provided a line item breakdown of how the expected
2009 synergies will be achieved, which will be available as an exhibit
to the Current Report on Form 8-K that the company is filing today.
“We have
made great strides over the last six weeks and continue to make
progress integrating the company and delivering on our promises to
customers and stockholders,” said Mel Karmazin, CEO of SIRIUS XM Radio.
“We are finding significant cost savings on every line item of the
P&L and are beginning to realize these synergies already. SIRIUS XM
also continues to be one of the strongest growth stories in media, with
pro forma revenue growth of approximately 17% in 2008.”
“Best of Both” information:
As part of “Best of Both” programming, most current XM customers will
continue to receive their existing XM service, and be able to obtain
select SIRIUS programming. Likewise, most current SIRIUS customers will
continue to receive their existing SIRIUS service and be able to obtain
select XM programming. In addition to their existing service, SIRIUS
and XM subscribers will be able to purchase the following channels:
SIRIUS on XM
Howard 100
Howard 101
Martha Stewart Living Radio
SIRIUS NFL Radio *
SIRIUS NASCAR Radio
Playboy Radio
XM on SIRIUS
NBA *
NHL Home Ice *
Oprah and Friends&
The Virus
Public Radio with Bob Edwards
College Sports *
PGA Tour
* Sports offerings will also include channels for play-by-play of NBA, NHL, NFL, and College Sports games.
Included
on the “Best of” XM on SIRIUS will be such shows as Basketball and
Beyond, hosted by Duke and Olympic basketball coach Mike Krzyzewski;
Andretti Green, with driver Danica Patrick; 60/20, a sports magazine
show by Luke Russert and James Carville; Indy Racing League car races;
and games from the top college conferences, including the PAC 10, SEC,
Big 10, Big 12, Big East and ACC.
Karmazin stated, “We have
been working closely with our content providers since the day the
merger closed and have made significant progress in those discussions.
The resulting “Best of Both” options we are outlining today represent
another step towards fulfilling our promise of more choices and lower
prices for our subscribers. We are very excited to begin offering
existing and prospective listeners access to even more compelling
programming and new packages.”
“Best
of Both” programming will be available to satellite radio consumers
beginning October 6, 2008 on most existing satellite radios at a
monthly cost of $16.99. Also, the company’s full slate of new packages
will be available to consumers on Oct. 6, including the opportunity to
choose programming on an a la carte basis for the first time ever in
subscription media.
