UPDATE 3-Sirius loss narrows, sees growth as autos recover
* Q3 adjusted EPS break-even vs Street view for 2 cent loss
* Q3 revenue up 3 pct, beats expectations
* Adds 102,000 subscribers to end Q3 with 18.5 mln
* Sees subscriber, revenue growth in 2010
* Shares rise about 4 pct in afternoon trading (Adds analyst comment, updates stock activity)
NEW YORK, Nov 5 (Reuters) - Sirius XM Radio Inc (SIRI.O) posted a smaller quarterly loss on Thursday, helped by subscriber gains and the success of premium programming on its pay radio service, and said it expects to sees subscribers and revenue grow in 2010 as the auto industry recovers.
Shares of Sirius XM rose about 4 percent amid signs of resilience at the company, which earlier this year secured financing from John Malone's Liberty Media Corp (LINTA.O) (LCAPA.O) LMDIA.O to stave off critical debt deadlines.
It ended the quarter with 18.5 million subscribers to its service, which is home to programming including Howard Stern, Oprah Winfrey and Major League Baseball. That was up 102,000 from the second quarter of this year but down 2 percent from the third quarter of 2008.
"Sirius added 102,000 (which) was significantly better than our estimate of a 237,000 decline, and above the 100,000 decline we think was being expected by investors," said J.P. Morgan analyst Lev Polinsky in a note to clients.
Its third-quarter net loss was $149 million, or 4 cents a share, compared with a loss of $4.88 billion, or $1.93 a share, a year earlier. The 2008 loss included a large charge related to goodwill.
Excluding special items, Sirius broke even on a per share basis in the quarter, beating Wall Street expectations for a loss of 2 cents, according to Thomson Reuters I/B/E/S.
Revenue rose 3 percent to $629.6 million, also outpacing analysts' expectations of $608.7 million.
BENEFITING FROM "CLUNKERS"
The U.S. government's Cash for Clunkers program, which boosted new car sales in July and August, was a boon for Sirius, which gains the majority of its new customers when cars are purchased. While car sales have since leveled off, many of those auto owners will remain Sirius subscribers.
Sirius XM Chief Executive Mel Karmazin said some 55 percent of new cars are now equipped for Sirius and nearly 47 percent of car buyers with promotional subscriptions that come with new cars eventually convert to paying customers. Continued...
