* Revenue up 9 pct, misses Street view
* Sees potential Japan supply issues affecting car sales
* Shares rise nearly 9 pct
(Adds detail on EPS, car sales data; updates share price)
By Liana B. Baker
NEW YORK, May 3 Sirius XM Radio Inc's (SIRI.O)
first-quarter revenue was boosted by more subscribers, but it
said lower car sales in the wake of the earthquake in Japan
could hurt its subscriber growth this year.
The company, home to programming by Howard Stern and Major
League Baseball, depends on the car industry to attract new
subscribers from new car owners who receive free radios in
their vehicles. Its services are featured in several car
brands, including Toyota Motor Corp (7203.T)
About half of the listeners who receive a few months of
free radio with their new car later sign up for the full
It added a better-than-expected 373,064 subscribers in the
quarter, bringing its total listener base to 20.6 million
people. Analysts were expecting additions in the 200,000s,
according to Lazard Capital Markets analyst Barton Crockett.
The company left its subscriber forecast unchanged at 1.4
million additions this year. It would have raised its forecast
were it not for supply issues stemming from the earthquake and
tsunami in Japan two months ago, it said in a statement.
"With the issue of Japan, there's speculation that total
car sales might drop so that's why Sirius XM's guidance looks
very conservative for the rest of the year," said Gabelli & Co
analyst Brett Harriss.
Sirius XM's chief financial officer David Frear told
analysts on a conference call Japan's supply issues did not
hurt auto sales in April and is "feeling pretty good" about
May. After May, the situation is unclear, said Chief Executive
"It is not entirely clear what our (car) partners will
experience," Karmazin said, adding that supply issues will not
effect the manufacturing of the physical satellite radios.
On Tuesday, General Motors Co (GM.N) and Ford Motor Co
(F.N) reported strong U.S. sales gains in April. Toyota and
Honda Motor Co Ltd (7267.T) will release their numbers later on
Tuesday and analysts expect them to be weaker because of the
earthquake in Japan. [ID:nN03296826]
Sirius XM expects full-year revenue to be about $3 billion
this year, slightly shy of analysts' estimates of $3.07
Net income rose to $78.1 million, or 1 cent per share, from
$41.5 million, or 1 cent per share, a year earlier. The company
said its earnings per share was the same as a year ago because
the number was rounded for accounting.
Revenue rose 9 percent to $723.8 million. Analysts were
expecting revenue of $736 million, according to Thomson Reuters
The company's shares were 8.9 percent higher at $2.08 in
afternoon trading on the Nasdaq.
(Reporting by Liana B. Baker; editing by Dave Zimmerman,
Derek Caney and Andre Grenon)