# Sirius Sticks with 1 Million Forecast



## Chris Blount (Jun 22, 2001)

At Sirius' annual shareholder meeting Tuesday, CEO Joe Clayton stuck to the satellite radio company's goal of reaching the 1 million mark by the end of the year.

Clayton cited Sirius' first quarter numbers, in which the company added more than 90,000 customers and took its total to 352,000, to illustrate ongoing momentum for the service. Most subscriber additions are expected to enroll during the second half of the year, typically a strong selling season for consumer electronics due to the holidays.

About 75 percent of sales have come from the retail level, which Clayton said continues to see good progress and is expected to grow thanks to new deals with Wal Mart, RadioShack and EchoStar's DISH Network.

Clayton also said Sirius continues to build relationships with vehicle manufacturers that put the company's radios into new cars. Sirius' exclusive vehicle manufacturer partners account for 40 percent of annual new car sales, Clayton said. And the satellite radio service should be in 80 vehicle models this year, representing annual production of 5 million cars and trucks, the CEO added.

In addition, Clayton said Sirius is set to achieve SAC (subscriber acquisition costs) below $200, an improvement from the $293 SAC figure recorded in 2003. Also, Sirius expects 2004 revenues to be about $75 million, up from $13 million for 2003, he said.

During the meeting, shareholders voiced concern with Sirius' brand awareness and visibility in the marketplace. Clayton said Sirius will make a major advertising push during the second half of the year, a move that will improve consumer knowledge of the service.

Clayton also said Sirius plans to expand its sales of advertising - already available on news and talk channels - to include the company's new local traffic and weather services.

http://www.skyreport.com (Used with permission)


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