July 28, 2008 / 12:29 PM / 11 years ago

REFILE-UPDATE 2-Sirius Satellite loss narrows, subscribers rise

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NEW YORK, July 28 (Reuters) - Sirius Satellite Radio Inc (SIRI.O) said on Monday its adjusted quarterly loss narrowed as it increased subscribers to its pay radio service.

Sirius, which is acquiring rival XM Satellite Radio Holdings XMSR.O, said its second-quarter adjusted loss from operations is expected to be $24 million, compared with a loss of $79 million a year earlier.

Sirius did not provide a net loss figure, nor did it give details on what gains or losses were factored into the “adjusted loss from operations.”

Revenue rose 25 percent to $283 million.

During the quarter, Sirius added a net 279,820 new subscribers. It ended the period with 8.9 million subscribers, an increase of about 25 percent from a year earlier.

Sirius, the satellite radio home to “shock jock” Howard Stern and the National Football League, said retail subscribers increased 7 percent, while automotive subscribers rose 53 percent.

The company expects to release a full quarterly report at some point in August, a spokesman said. Neither Sirius or XM, which posted its quarterly results last week, have hosted conference calls with analysts in recent months, in part because they anticipated the deal would have closed long ago.

Last week Sirius’ proposed $3.3 billion acquisition of XM drew nearer to completion after it was approved, with conditions, by U.S. communications regulators. The deal will leave just one U.S. satellite radio service.

The Federal Communications Commission voted in favor of a proposal that would allow the deal to proceed as long as the companies meet a series of consumer-protection conditions, including a three-year cap on prices, setting aside 8 percent of their channel capacity for minority and noncommercial programming, and payment of a $19.7 million penalty for past FCC rule violations.

Separately, Sirius announced certain equity offerings, including a “share borrow facility” and the sale over time of up to $65 million in its stock.

In a note to clients, analyst Tom Watts, of Cowen & Co, said Sirius’ quarterly results were “solid,” and called the share moves “finishing touches” before the deal is completed.

Share of Sirius fell 24 cents, or about 11 percent, to $2.01 in afternoon trade on Monday. XM shares fell 7 percent to $8.61. (Reporting by Franklin Paul; Editing by Derek Caney and John Wallace)

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