Sirius Satellite Radio it has increased the number of subscribers it estimates the company will acquire in 2004. Sirius now expects to end the year with approximately 1 million subscribers, up from the company’s previous estimate of 860,000.
The increase was prompted bylast wekeed today’s announcement of agreements with EchoStar Communications and RadioShack. Beginning in mid-2004, RadioShack stores and dealers, and distributors that offer EchoStar’s DISH Network, will market Sirius products and service.
These agreements are projected to increase dramatically Sirius’ product availability from over 6,000 retail floors today to over 20,000 by the end of 2004.
“These agreements are tremendous for Sirius, from both a strategic and financial perspective, and should generate significant additional subscribers,” said David Frear, Executive Vice President and Chief Financial Officer of Sirius.
“Our goal is to generate over 2 million subscribers for Sirius over the term of these multi-year agreements, starting in the second half of this year. The positive impact expected from these alliances was not incorporated into our previous sales estimates.”
The company also announced today that it expects full year 2004 revenue to exceed $70 million, up from the estimate of over $60 million, which was provided on the company’s January 28th conference call. The company continues to expect to reach the cash-flow breakeven point of 2 million subscribers by the end of 2005.
