PEOPLE DON'T WANT TO PAY FOR RADIO WHEN IT'S FREE. THEY WANT VIDEO SCREENS IN THEIR CARS SO THEY CAN USE SATELLITE NAVIGATION TOOLS, CHECK NEWS AND INTERNET, AND LET THEIR KIDS WATCH DVD. THAT IS THE FUTURE, MY FRIENDS, NOT SUBSCRIPTION RADIO. WHY PAY FOR SOMETHING THAT IS FREE? SORRY HOWARD AND MEL, YOU TOOK THE WRONG FORK IN THE ROAD, IMHO...
For the nine months ended 9/04, revenues totaled $41.6 million, up from $7.9 million. Net loss applicable to Common totaled $450.3M, up from $166.6 million. Results reflect subscription base growth, offset by the absence of debt restructuring income.
Siriusly scary finances
Let's begin with a reality check: Sirius is a firm that closed last Friday with a market cap of $3.8 billion, but has recorded just under $8 million in sales for the first three quarters of 2003. Sirius has been going through cash like the proverbial drunken sailor (somewhere around $90 million per quarter), and has posted quarterly net losses well north of $100 million for the past several quarters.
In fact, a trip through the Sirius's financials makes for some of the spookiest reading this side of Stephen King. The quarterly losses were actually accelerating at a horrific clip, as the company's net red ink has almost doubled every year since 1999, before flattening a bit this year.
Want a couple more chilling numbers? In Q3 '03, the cost of customer service and billing was $2.2 million. That expense alone ate up more than half of Sirius's $4.3 million in revenues. Call me a cynic, but I have doubts about a business that has to cough up $0.50 on its way to charging me a dollar.