Howard Stern Sues Sirius XM Radio
According to Reuters.com Howard Stern and his agent are suing Sirius XM Radio for refusing to provide performance based stock options as promised.
Stern’s lawyers say Sirius XM Radio offered Stern a series of escalating stock awards in 2004 that hinged beating subscriber estimates by 2 million or more in any year of Stern’s contract. According to the filing Stern helped the company surpass the target by more than 2 million subscribers in 2006 and 2007. After the merger with XM in 2008, Sirius XM again beat its targets, as well as in 2009 and 2010.
“Now that Sirius has conquered its chief competitor and acquired more than 20 million subscribers, it has reneged on its commitment to Stern, unilaterally deciding that it has paid him enough,” the complaint said.
In response, Sirius XM said it had “met all of our obligations under the terms of our 2004 agreement with Howard, his agent and production company.” It added it was “surprised and disappointed” by the legal action.
Stern’s production company, One Twelve, was paid stock awards in the first year of Stern’s contract. Sirius XM was also supposed to pay Stern’s agent, Don Buchwald, a consulting fee of 10 percent, the court documents showed.
Updated: You can read the 23 page summons here: http://www.scribd.com/doc/51320553/Stern-v-SiriusComplaint
(Via: Reuters.com)
Mel Karmazin to be Featured Speaker at the Lazard Capital Markets Technology and Media Conference
Sirius XM Radio today announced that Mel Karmazin, its Chief Executive Officer, is expected to be a featured speaker at the Lazard Capital Markets Technology and Media Conference in Boston, MA, on Tuesday, March 15, 2011 at approximately noon ET.
An audio webcast of the presentation will be available via the Investor Relations section of the company’s website, www.siriusxm.com
David Frear to Present at Credit Suisse and Deutsche Bank Investor Conferences
Sirius XM Radio today announced that David Frear, Executive Vice President and Chief Financial Officer, SiriusXM, is expected to present at the Credit Suisse Global Media and Communications Convergence Conference in Miami, FL, on Tuesday, March 8, 2011 at approximately 9:30 am ET. He is also expected to present at the Deutsche Bank Media and Telecommunications Conference in Palm Beach, FL, on Wednesday, March 9, 2011 at approximately 10:10 am ET.
An audio webcast of the presentations will be available via the Investor Relations section of siriusxm.com
XM Canada Receives Competition Bureau Ruling On Merger
Canadian Satellite Radio Holdings Inc., the parent company of XM Canada, is pleased by today’s announcement from the Competition Bureau that it does not intend to make an application to the Competition Tribunal to challenge the proposed acquisition of Sirius Canada Inc. by Canadian Satellite Radio Holdings Inc. under the merger provisions of the Competition Act.
“Coming on the heels of last week’s CSR shareholder approval, today’s announcement is another exciting step forward in the process towards the proposed merger. We look forward to the next step at the March CRTC hearing,” said John Bitove, Executive Chairman of CSR. “We are pleased that the competition bureau recognizes that the combined company will create a stronger Canadian media company that not only provides a platform for future innovation within the audio entertainment industry but will offer a better opportunity for artists to reach new audiences.”
The consummation of the merger remains subject to the satisfaction of, or compliance with, certain conditions, including receiving all necessary regulatory approvals (together with CRTC approval) and the successful refinancing of the Company’s indebtedness. There can be no assurance that the Company or Sirius will be able to satisfy or comply with these or other customary closing conditions. Details of the Combination Transaction are contained in the Company’s information circular (the “Circular“) dated January 12, 2011, which is available on SEDAR at www.sedar.com.
At the CSR annual general meeting held in Toronto on February 17th, shareholders unanimously approved the merger of XM Canada and Sirius Canada recognizing that a merger of equals will enhance the long-term success of satellite radio in Canada.
The transaction is currently expected to close during the third quarter of the Company’s 2011 fiscal year.
SiriusXM Reports Record 2010 Results
- Subscribers Grow to Record 20.2 Million
- Revenue of $2.82 Billion, Up 14% Over 2009
- Adjusted EBITDA of $626 Million, Up 35% Over 2009
- Free Cash Flow of $210 Million, Up 14% Over 2009
- 2011 Guidance Expects Continued Growth
Sirius XM Radio announced their full year 2010 financial results, including revenue of $2.82 billion, up 14% over 2009 revenue of $2.47 billion, and adjusted EBITDA of $626 million, up 35% from $463 million in 2009.
“SiriusXM’s results in 2010 were exceptional, surpassing our guidance and achieving record revenues, adjusted EBITDA and free cash flow. Our unparalleled content and the continuing improvements in the economy helped us attain a record-high subscriber base of 20.2 million. Our laser-like focus on profitable growth delivered a 35% increase in adjusted EBITDA to $626 million, and produced free cash flow of more than $200 million,” noted Mel Karmazin, Chief Executive Officer, SiriusXM.
“Our renewed contracts with Howard Stern and the NFL, as well as investments in exciting new content, ensure that our subscribers will continue to enjoy the unparalleled entertainment that has made SiriusXM the largest subscription radio company in the world,” said Karmazin. “With the outlook for improving U.S. auto sales, declining capital expenditures and the expanded functionality coming with the launch of SiriusXM 2.0, we look forward to another year of growth and strong financial performance.”
This discussion of adjusted operating results, including adjusted EBITDA, excludes the effects of stock-based compensation and certain purchase price accounting adjustments. A reconciliation of these non-GAAP items to their nearest GAAP equivalent is contained in the financial supplements included with this release.
Net subscriber additions in 2010 were 1,418,206, compared to a net subscriber loss in 2009 of 231,098. Ending subscribers as of December 31, 2010 were 20,190,964, up 8% from the 18,772,758 subscribers reported as of December 31, 2009. Subscriber acquisition cost (SAC) per gross subscriber addition was $59 in 2010, a 6% improvement from the $63 reported in 2009. Average self-pay monthly customer churn was 1.9% in 2010, as compared with 2.0% in 2009.
Free cash flow in 2010 was $210 million, compared to $185 million in 2009. GAAP net income (loss) attributable to common stockholders for 2010 and 2009 was $43 million and ($538) million, respectively, or $0.01 and ($0.15) per diluted share, respectively. Excluding debt extinguishment and restructuring charges, our 2010 net income (loss) attributable to common stockholders for 2010 and 2009, would have been $227 million and ($238) million, respectively.
“Our strong incremental margins, combined with revenue growth and tight expense control have produced solid operating leverage, improving adjusted EBITDA by over $750 million from 2008 to 2010,” said David Frear, SiriusXM’s Executive Vice President and Chief Financial Officer. “We ended the year with $587 million of cash after the early retirement of approximately $38 million of our 3.25% Convertible Notes due 2011. Since the beginning of 2011, we have purchased another $131 million of our debt in the market. With only $104 million of debt maturing before 2013, declining capital expenditures and growing free cash flow, our financial strength and flexibility has never been better.”
FOURTH QUARTER 2010 RESULTS
Fourth quarter 2010 revenue of $736 million was up 9% from the $676 million in the fourth quarter of 2009, while fourth quarter 2010 adjusted EBITDA was $144 million, up 25% from the $115 million in the fourth quarter of 2009.
Net subscriber additions in the fourth quarter of 2010 were 328,789, versus net subscriber additions of 257,028 in the fourth quarter of 2009. Subscriber acquisition cost (SAC) per gross subscriber addition was $58 in the fourth quarter of 2010, a 9% improvement from the $64 reported in the fourth quarter of 2009. Average self-pay monthly customer churn was 1.9% in the fourth quarter of 2010, as compared with 2.0% in the fourth quarter of 2009.
Free cash flow in the fourth quarter of 2010 was $167 million, compared to $150 million in the fourth quarter of 2009. GAAP net (loss) income attributable to common stockholders for the fourth quarter of 2010 and 2009 was ($81) million and $12 million, respectively, or ($0.02) and $0.00 per diluted share, respectively. Excluding debt extinguishment and restructuring charges, our net income attributable to common stockholders for fourth quarter 2010 and 2009, would have been $64 million and $18 million, respectively.
2011 GUIDANCE
In 2011, we expect full-year revenue of approximately $3 billion. Our adjusted EBITDA is projected to approximate $715 million.
“With continuing improvements in auto sales, and self-pay churn and conversion rates for 2011 similar to our strong performance in 2010, we expect to grow our net new subscribers by another 1.4 million in 2011, continuing our track record of solid subscriber growth. We also expect this year’s free cash flow to approach $300 million,” said Karmazin.
Click here to read the full 2010 results.
Teleca Announces Development of Android Platform for SiriusXM Radio
Not much information in the press release below but it looks like SiriusXM will be giving Android some more love in the near future. This could be another step towards Satellite Radio 2.0 that will be launching later this year.
Press Release
Teleca, a world-leading supplier of embedded software solutions for
the consumer electronics, automotive and mobile industries, today announced the development
of an Android platform solution for use in SiriusXM’s next generation vehicle, portable and home
products.
“SiriusXM continues to develop innovative products that allow our subscribers to experience the
best audio entertainment available,” said Sean Gibbons, vice president of product marketing for
SiriusXM’s aftermarket division. “We were impressed with Teleca’s experience with the Android
Operating System and strong background in radio interface integration. Teleca is working with us
to develop a complete platform strategy for delivering our unique and compelling programming to
consumers.”
“The platform we have developed for SiriusXM is an excellent example of Teleca’s ability to
seamlessly integrate a customer’s IP into a dynamic Android Operating System,” said John
Trobough, president, Teleca USA. “Most importantly, the reference application allows SiriusXM
and third-party developers to quickly build out new products and thereby retain their competitive
edge.”
Teleca will be demonstrating its comprehensive line of solutions at Mobile World Congress in
Barcelona, Hall 8 Stand 8B79, February 14-17.
Via (Engadget)
Sirius and XM Radio Finally merge into one website.
It took almost three years but Sirius XM Radio has finally merger both Sirius.com and Xmradio.com. I made a post about this the other night, while visiting Sirius.com I saw the new site but it was quickly removed so I removed the post not wanting to report false information.
Besides a the new logo which so far looks good, the new Site is cleaner and easier to navigate. I have not tried listening online yet but did see a few complaints online this morning. It’s nice to see Sirius Xm slowly making progress on merging the two companies together. I’m always getting questions from confused potential subscribers on the differences between both companies so this looks like a step in the right direction.
The new site can be reached at Siriusxm.com
Leave your thoughts on the new site in the comments below.
MINI USA and BMW Motorcycles to Offer SIRIUS as Standard Equipment on New 2011 Models
MINI USA and SIRIUS XM Radio today announced that MINI will offer SIRIUS as standard equipment on new Model Year 2011 MINI vehicles.
MINI will include an introductory one-year subscription to the “SIRIUS Everything” package with the purchase of every new 2011 MINI vehicle.
“We are very excited to offer SIRIUS as standard equipment on 2011 MINI vehicles, as it ensures that every MINI includes a well-rounded selection of in-car entertainment options,” said Jim McDowell, Vice President, MINI USA. ”SIRIUS is fully integrated into all three of the MINI infotainment options, and allows MINI owners to further personalize their MINI driving experience at the push of a button.”
“MINI drivers appreciate efficient performance and value, and now all new MINI owners will be able to enjoy SIRIUS with its broad range of diverse content,” said Steve Cook, Group Vice President and General Manager, Automotive Division, SIRIUS XM Radio. “By including a one-year introductory subscription, MINI drivers can enjoy the best in-vehicle audio entertainment beginning with the first time they start-up their new vehicles.”
The “SIRIUS Everything” package delivers more than 135 channels, including 100% commercial-free music, plus premier sports, news, talk, entertainment, traffic and weather information.
All new Model Year 2011 MINI Hardtop, Convertible, Clubman and Countryman vehicles will include a factory-equipped satellite radio and a one-year introductory subscription to the “SIRIUS Everything” package. After the introductory one-year subscription, the SIRIUS service will be subject to the standard rates.
BMW Motorcycles announced that beginning with January 2011 production, BMW Motorcycles will offer SIRIUS as standard equipment on new radio-equipped Model Year 2011 R 1200 RT, K 1600 GT, and K 1600 GTL Touring Motorcycles.
BMW Motorcycle will include an introductory one-year subscription to the “SIRIUS Everything” package with the purchase of every new radio-equipped RT, GT and GTL Touring Motorcycles produced from January 2011.
“BMW Motorcycle owners expect exceptional performance and our customers seek out the best riding experiences,” said Pieter de Waal, Vice President, BMW Motorcycles. ”Audio entertainment is one of the pleasures of riding a Touring Motorcycle, and we are very excited to have SIRIUS become standard equipment on our new Touring Motorcycles, providing the perfect soundtrack for the perfect ride.”
“BMW Motorcycle sets the standard for high performance and style, and now their customers are able to enjoy the premium audio entertainment experience of SIRIUS,” said Steve Cook, Group Vice President and General Manager, Automotive Division, SIRIUS XM Radio. ”We are thrilled to provide BMW Motorcycle customers with more than 135 channels of unique, fun, and memorable programming to experience the excitement of the open road.”
The “SIRIUS Everything” package delivers more than 135 channels of premier sports, news, talk, entertainment and commercial-free music programming plus traffic and weather information.
All new Model Year 2011 R 1200 RT, K 1600 GT, and K 1600 GTL Touring Motorcycles will include a factory-equipped satellite radio and a one-year introductory subscription to the “SIRIUS Everything” package. After the introductory one-year subscription, the SIRIUS service will be subject to the standard rates.
Sirius XM, XM-5 Satellite has Been Successfully Placed in Orbit and Declared Ready for Service
SIRIUS XM Radio, announced today that XM-5, the newest addition to its satellite fleet, has been successfully placed in orbit and was declared ready for service. The new satellite, which was manufactured by Space Systems/Loral, is intended to serve as an in-orbit spare for the existing fleet of SIRIUS and XM satellites.
The XM-5 satellite was launched October 14 from the Baikonur Cosmodrome in Kazakhstan aboard an International Launch Services (ILS) Proton. All orbit raising, deployments, and in orbit test are now successfully completed. The satellite will be situated at 85.2 degrees west longitude, over the eastern half of the United States. XM-5 is owned by XM Satellite Radio Inc., a wholly-owned subsidiary of SIRIUS XM.
“XM-5 will help ensure continuous and reliable delivery of service to millions of customers across North America,” said Terry Smith, Chief Engineering Officer, SIRIUS XM Radio. “XM-5 is intended to bolster the reliability and longevity of our satellite fleet for many years to come and we congratulate our engineering team, Space Systems/Loral and International Launch Services on a successful launch and implementation.”
SIRIUS XM Reaches 20 Million Subscribers
SIRIUS XM Radio today announced that it recently surpassed 20 million subscribers, a record number of subscribers in satellite radio history.
Mel Karmazin, SIRIUS XM’s Chief Executive Officer, stated, “Reaching and surpassing 20 million subscribers is a significant milestone for us. We have added the last 10 million subscribers faster than the first 10 million — despite a tremendously competitive environment — representing a strong endorsement of our service and our programming by discerning consumers who want and demand the best in audio entertainment. As a leader in audio entertainment, SIRIUS XM has assembled the best content, personalities, and entertainers that satisfy our subscribers’ diverse interests.”
In celebration of this milestone, SIRIUS XM previously announced a special, subscriber-only broadcast of an exclusive Paul McCartney concert at the Apollo Theater in New York City on December 13, 2010.
