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Wednesday, August 4, 2010

Sirius XM turns a profit in the latest quarter, raises guidance

Sirius XM

Second quarter revenue of $700 million was higher than analysts expected, and the profit of $15.3 million was also unexpected. The main subscriber numbers for April-June were already public, thanks to the “pre-announcing” by CEO Mel Karmazin several weeks ago. The highlights: Sirius XM gained 583,249 net subscribers in the quarter to hit a record-high 19,527,488 users of its satellite radio system. Car sales are very important to Sirius XM and this year’s pickup helps the company. This morning, Karmazin raised guidance for all of 2010 and now predicts $2.8 billion in adjusted revenue and as much as $150 million in free cash flow. It had already raised its guidance for net subscriber additions this year – to 1.1 million. Check this morning’s Q2 results from Sirius XM.

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