Karmazin Confident of Merger; Sirius Shares Still Stumble


Mel Karmazin reiterated his prediction that the Sirius-XM merger, still undergoing regulatory review, will be completed by year’s end. Better than expected subscriber growth did not, however, overcome the fact that revenues were $241.8 million, below the $244.3 million estimate by analysts polled by Thompson Financial. At post time Sirius shares are down 25 cents, or 7 percent to $3.37.

In his conference call this morning, Sirius Radio CEO Mel Karmazin said that Sirius has 7.7 million subscribers and is ”solidly on pace to exit 2007 with more than 8 million subscribers.” The company added 545,938 subscribers this quarter.

Karmazin also used the conference call to criticize ”The Stern Effect,” where analysts of the industry argued that after the initial thrill of an uncensored Howard Stern on satellite radio — 4Q05 and 1Q06 — there would be a drop off in net subscribers.

Sirius’ net quarterly loss was $120.1 million, or $.08 a share, against $162.9 million, or $.12 from a year ago.

(image via orbitcast)