Sirius-XM reports $5 billion loss in 3Q

Even with the recent merger of Sirius Satellite Radio, and XM Satellite Radio, into the newly named Sirius-XM Satellite Radio, the company reported a loss of almost $5 Billion in the third quarter.

The company has been feeling the strain since before the merger that happened in July, from its stocks, which have been plummeting since April 2008. The stocks fell from $2.69 a share in May, to a closing $0.27 a share on November 10, 2008.

The company did have a positive reporting of subscribers at the end of the third quarter, at 18.92 million, up 17% from last year. Sales have also gone up from the merger with XM Satellite Radio. The company ended the third quarter with $359.6 million in revenue, which is also down from $438.8 million last year.

Ultimately, the company will be cutting back 22% of its workforce to help in the crisis, which will slash costs for the company to help repay its outstanding refinance of $620 million which will need to be repaid in February and May of next year. Trouble times are ahead for Sirius-XM unless they can turn the tables during the economic downfall.

Report a problem with article
Previous Story

DeskAngel v2.0.9.31 released

Next Story

Al Gore's got a feeling…

8 Comments

Commenting is disabled on this article.

This can only be a good thing. I am sick of hearing Sirius "Hits" One everywhere I go. Terrible music seems to be cancerous.

Damn, with stock prices at $0.27, I wonder if now would be a good time to buy lol. Looking to double a couple grand, but I guess that won't happen overnight here since their stock has been dropping for the last 6 months.

IceBreakerG said,
Damn, with stock prices at $0.27, I wonder if now would be a good time to buy lol. Looking to double a couple grand, but I guess that won't happen overnight here since their stock has been dropping for the last 6 months.

Um, you do know we're in a recession now, right?

Satellite Radio needs to improve drastically, some of it is ok, but certainly not worth paying the price of it sometimes.
I had XM until they screwd me over on a rebate and refused to honor it, I dropped them like a hot potato and even ignored all their pleas and discount offers to come back, then I switched to Sirius it's not much better.

Now they are offering a la carte and some of the XM channels on Sirius, they wont give me the price on how much extra it is, all they keep telling me is the new subscription price for everything, well I already prepaid for the year. they also didn't reply to my request for answer to this question, maybe nobody left to answer the e-mails now.