Sirius cuts losses before XM merger

The satellite radio company boosts second-quarter revenues by 25 percent and reduces its net loss before closing its final quarter as a standalone company.

Dawn Kawamoto Former Staff writer, CNET News
Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.
Dawn Kawamoto

Sirius XM Radio on Thursday announced that its Sirius side posted a 25 percent jump in second-quarter revenue and pared back its net loss as it closed its final quarter as a standalone company.

Revenues for Sirius Satellite Radio, which closed its long-awaited merger with XM Satellite Radio after the quarter ended, rose to $283 million for the three-month period ending June 30, up from $226.4 million a year earlier.

"Despite a tough economy and weak auto sales, gross additions set a new second-quarter record. In the second quarter, both revenue and subscribers grew 25 percent, compared with last year," CEO Mel Karmazin said in a statement, adding that the company's costs, meanwhile, remained essentially flat and aided in reducing its net loss.

Sirius posted a net loss of nearly $84 million, compared with a loss of $134.1 million a year ago.

With the merger now complete, the combined company is expected to generate $400 million in cost savings next year and annualized revenues in excess of $2.4 billion.

"The combined company now has an annualized revenue run rate of over $2.4 billion, making Sirius XM Radio one of the fastest-growing and best positioned subscription media businesses," Karmazin said. "With rapid integration efforts under way, we started realizing synergies on day 1."