Wedbush Note On sirius
May 2, 2007
Sirius Satellite: Favorable quarter not enough to offset longer-term challenges - Wedbush
SIRI reported Q1 results better than expected, led by subscriber additions. Although SIRI is continuing to evolve into a more financially driven story, the rate of consumer adoption remains the greatest area of focus, especially since the co still needs considerable growth to justify its present valuation levels. On that note, firm says SIRI reported net subscriber additions of 556k, besting firm's 496k net adds est. Firm believes the subscriber growth, relative to expectations, came from two areas—an increase in multi-family subscriptions and OEM demand. The results were naturally down from last year's 761k net adds, given a diminished Howard Stern effect and a larger replacement churn burden. Nevertheless, relative to the competition, firm notes Sirius' Q1 gross additions were 989k, well ahead of XM's 868k.
5/02/2007 10:40:00 AM
SSG Has Merged. You Can Read All Of The Latest SSG Content By Clicking Here
0 Comments:
SSG is not a Financial Advisor. Read Disclosure: HERE
--------------------------------------------------------
