.

Sirius XM Posts First Profits Since Merger, But Will Stern Stay?

February 26, 2010 12:00 AM ET

For the first time since their 2008 merger, Sirius XM radio are in the black with a $14.2 million profit in the fourth quarter of 2009, the New York Times reports. That might not sound like much — it equates to less than penny gain per stock share — but considering Sirius XM lost $245 million in the year following the merger, the profit represents a financial shift for the company. Sirius XM were helped by the fact that the automobile industry, an indispensable partner for the satellite radio company (people love their car stereos), showed signs of post-recession recovery. Sirius XM anticipated another half-million new customers by the end of 2010.

At press time, Sirius XM's stock currently sits at $1.03 — again, not a huge number — but the stock had sunk to as low as 12 cents in the past 52 weeks while the company narrowly avoided bankruptcy at one point. As Rolling Stone previously reported, last May Sirius XM reported its first-ever drop in subscribers — and many listeners were initially rankled by station shifts as the company consolidated channels. According to the NYT, lower costs and an increase of new-car buyers purchasing a subscription after their free trial expired also contributed to Sirius XM's turnaround.

Total revenue for Sirius XM was $684 million, beating out industry expectations by $20 million. One dark cloud on the horizon, however, is the possible departure of shock jock Howard Stern, whose massive five-year contract with Sirius wraps up at year's end.

Related Stories:
Howard Stern Named as Rumored Replacement for Cowell on "Idol"
Satellite Radio Listeners Rankled By XM-Sirius Merger
Sirius XM Avoids Bankruptcy, Reaches Deal with Liberty Media

To read the new issue of Rolling Stone online, plus the entire RS archive: Click Here

prev
Music Main Next
Daily Newsletter

Get the latest RS news in your inbox.

Sign up to receive the Rolling Stone newsletter and special offers from RS and its
marketing partners.

X

We may use your e-mail address to send you the newsletter and offers that may interest you, on behalf of Rolling Stone and its partners. For more information please read our Privacy Policy.

Song Stories

“Promiscuous”

Nelly Furtado with Timbaland | 2006

This club-oriented single featuring Timbaland, who produced Nelly Furtado's third album, Loose, was Furtado’s sexy return after the Canadian singer's exploration of her Portuguese heritage on Folklore. "In the studio, initially I didn’t know if I could do it, 'cause Timbaland wrote that chorus," Furtado said. "I'm like, 'That's cool, but I don't know if I'm ready to do full-out club.'" The flirty lyrics are a dance between a guy and girl, each knowing they will end up in bed together but still playing the game. "Tim and I called it 'The BlackBerry Song,' she said, "because everything we say in the song you could text-message to somebody."

More Song Stories entries »
 
www.expandtheroom.com