Sirius XM takes impairment charge
Company reports Q3 revenue increase of 16%Sirius XM Radio said Monday it took a $4.8 billion impairment charge on the reduced value of assets, and said that it would delay the filing of quarterly reports "for not more than five days."
The company, though, did release its third-quarter results. Without the hefty charge, and assuming the merger with XM was in place a year ago, Sirius reported revenue that climbed 16% to $612.8 million.
The pro forma loss was $217 million, down from $265.5 million last year.
Sirius said it added 344,100 net subscribers to end the quarter with 18.9 million, about 17% more than it had a year ago.
Sirius has been hurt in an economy particularly hostile to companies with large amounts of debt and that rely on partnerships with the struggling auto industry, and those problems have been reflected in the dwindling price of its stock.
On Monday, shares rose a penny to 27 cents. Wall Street has been speculating on whether Sirius will reverse-split its stock in order to raise the price and avoid threats of being delisted from Nasdaq.
The company said it will end the year with 19.1 million subscribers and end next year with 20.6 million. It also predicted free-cash flow of $4 million in 2010, rising to $1.4 billion in 2013.
Sirius CEO Mel Karmazin boasted that, despite a tough economy, "churn remained flat from last year at an impressive 1.7%."