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Though an expanding subscriber base nearly tripled Sirius Satellite Radio’s first quarter revenue, the company reported Tuesday that its losses more than doubled in the first quarter, pointing mainly to the $225 million it paid in stock-based compensation to shock jock Howard Stern and his affiliates as the culprit, writes Yahoo. The company reported total stock compensation expenses of $284.6 million, accounting for 20 cents per share of the loss.
A year ago, Sirius reported a Q1 loss of $193.6 million, or 15 cents a share. This year, however, the radio satellite provider posted a net loss of $458.5 million, or 33 cents a share, on the January-March reports.
Sirius said it expects to start turning a profit on a cash flow basis by the fourth quarter of 2006, and that its average cost to acquire a new subscriber dropped 41 percent to $113 in the quarter. The company also reported a subscriber base of 4.1 million at the end of the first quarter, and now hopes to have 6.2 million subscribers by the end 2006.
Also, CEO Mel Karmazin said Sirius did not plan to follow XM’s efforts in syndicating some of its programming to terrestrial radio.
By the end of 2008, revenue growth in the radio industry is expected to have fallen 7%, the second year of negative growth for the medium, according to estimates in a report from from BIA Advisory Services, writes MarketingCharts.
BIA estimates that…
Next in the long list of companies cutting jobs comes Tribune Co., which is slicing positions at The Chicago Tribune.
About 12 employees at the Trib were given the rest of the week to clean out their desks; more cuts…
Target is one of the first brands to create an iPhone application. The Target “gift globe” allows iPhone users to shake their phones to launch a snow-fall effect.
When the snow clears, a gift idea from Target is revealed. Users…
NBCU is launching its latest round of layoffs, with up to 500 jobs, or 3% of its work force, expected to be cut.
NBC News bureaus in Dallas and Los Angeles will be affected, writes TV Newser. L.A. correspondent John Larson,…
A Specific Media study finds the presence of display advertising significantly affects click-through and search style across both paid and organic searches.
In the “travel and tourism” category, display advertising engendered a 274% lift on both paid and organic search.…
Today’s Wall Street Journal is running a cover wrap for Dell. The ad covers a third of the front page and all of the back.
Though the New York Post and the Daily News commonly use cover wraps, the move…
