When you've got good news to share, why wait for the next available trading day? Satellite radio star Sirius
The cash flow milestone is a welcome one, even if the company had been pointing to the fourth quarter as a target to achieve it for months now. Rival XM
Closing out the quarter with just more than 6 million subscribers was also not much of a surprise. Sirius had initially expected to watch over as many as 6.3 million subscribers before it warned that it would likely be servicing between 5.9 million to 6.1 million subscribers by the end of the year.
Barring a last-minute miracle from XM, Sirius wound up adding more net new subscribers during every single quarter of the year than its only satrad competitor.
It's not all roses in the Sirius camp, though. Yes, the company landed 2.7 million new net additions for the year as a whole, and that's an improvement over the 2.2 million subscribers it signed up a year earlier. However, that data is front-heavy with most of year-over-year gains coming early in 2006 as Howard Stern took over channels 100 and 101 on the Sirius dial. In the fourth quarter, Sirius landed just 0.9 million net new subscribers after tacking on 1.1 million new listeners a year earlier. In other words, it will be a real challenge to the company's growth rate in 2007.
Yes, Sirius will benefit from a wider range of new cars from companies like Ford
Still, kudos to Sirius for hitting two important milestones. Keep going, now, because the road to prosperity is a long one.
For more on this epic battle, check out:
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Longtime Fool contributor Rick Munarriz is a Sirius and XM subscriber but he does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.