Sirius XM Radio anticipates that at the end of this year, it will have about 20.1 million subscribers to its pay radio service. This figure is a bit higher than its forecast given only two months ago.
For three straight quarters, Sirius XM has posted profits and its subscribers are steadily increasing. Sirius XM, which carries programs by Howard Stern and Oprah Winfrey as well as Major League Baseball, has previously experienced huge losses and has had to contend with doubts about its business model.
Sirius XM's performance is watched closely in the auto industry because the majority of its new subscribers are tied to new vehicle purchases.
The company has estimated that 55% of light vehicles sold in the US come with Sirius XM radios. CEO Mel Karmazin, a media industry veteran, made a presentation to investors last Friday. He reported that the company’s 2010 sales outlook was "optimistic" and that the adjusted revenue is expected to be close to $2.8 billion.
Last August, Karmazin revealed its second-quarter results and also raised its revenue estimate to $2.8 billion from $2.7 billion. Back then, Karmazin said that it had set a goal for 1.1 million net new subscribers for 2010, which is double its initial forecast.
However, Karmazin has again raised its forecast last Friday. He said that at the end of 2010, it will have 20.1 million subscribers -- an increase of 1.3 million subscribers over the 18.8 million it had at the end of 2009. [via autonews - sub. required]