By Relmor Demitrius

Sirius XM Radio may have spilled the beans again in their quarterly filings.  As is often the case with companies, a careful read of their annual report can provide many clues and hints to future plans.  Sirius XM’s annual report filed on February 25th appears to be no exception.  There are some changes from their third quarter report that are definately noteworthy.

Looking over expected cash contractual obligations from this filing, we will see there has been some changes from the November  filed third quarter report.  Here is what Sirius XM defined as their cash contractual obligations for the coming years on this current annual report.  These would be cash expenses that have been well planned for, consistent, and very much a part of their operating structure.  These assessments have proven in the past to be accurate and helpful in projecting their results.  So these figures are definitely to be respected.

From the 2009 Annual Report From February of 2010: (more…)

By Relmor Demitrius

Sirius XM Radio (Nasdaq:SIRI) reported its fourth quarter results on February 25th.  In that report they finally gave some details to their global expansion plans, hinted at in their filings since 2009 and earlier.  According to Sirius XM, they have begun discussions with a Mexican Telecommunications Company, ACIR DARS, to begin selling their subscription based service in Mexico.

Already serving Canada, the desire to add other markets is hardly new news, as their existing satellite array already covers this area and others nearby.  With plans to add coverage in Puerto Rico already in play, a clear plan to cover most geographical markets on this side of the hemisphere are being more defined as time progresses.  On the other side of the ocean, with Liberty Media, through Liberty Capital (Nasdaq:LCAPA), already announcing intentions to offer the satellite radio service to other international markets, more than likely through Liberty’s recent control of Worldspace assets (OTC:WRSPQ), a clear global growth story is in play.

If your satellite coverage can reach other markets already, it makes sense to use their existing cost basis to add more subscribers through local national companies that can better market and distribute the product.  ACIR DARS will probably be in charge of billing and national service issues, while simply paying a royalty to Sirius XM for the content and delivery.  Sirius XM will also have the ability to be a part owner of this project, as they did with Sirius Canada and XM Canada, if the venture proves profitable on their level.  This could also mean a nice boost in retail radio revenues as well, as the drive to add subscribers at first in Mexico will more than likely come exclusively through the retail market.  ACIR DARS is a company that is deeply entrenched in the Mexican market already, and would make a perfect partner for Sirius XM going forward.

Long SIRI

By Relmor Demitrius -

Sirius XM Radio (NASDAQ:SIRI) filed its 10-K Annual Report on Thursday, February 25th.  It was another strong quarter for the company, improving further on their operating income and free cash flow year to year.  Also reporting this week was Liberty Media, which owns 40% of Sirius XM, within Liberty Capital (Nasdaq:LCAPA).  They also mentioned all the positives about the company, and that they may seek to add more shares in it as well.  Not many I’m assuming, as they cannot add more than 4.9% more right now, according to their own agreement with Sirius XM.  They could add more than that after 1 more year, but more likely 2 years would be the target time frame for anything to happen in this area.

Highlights include:

• Positive Free Cash Flow for the entire 2009 year.
• Have had two consecutive quarters of positive subscriber growth.
• Reported that almost 100 percent of the royalty rate charges had hit subscribers, of ones that could possible be charged.
• Positive Operating Income
• Beat EBITDA estimates and guidance for 2009.
• Reported Break Even Earnings, beating the street consensus by 200%.

Despite paying down outstanding bonds, huge interest payments on their debt, and it being one of the worst economic years in decades, Sirius XM left 2009 with around the same amount of cash on had they started the year with, and even added 3 million to their totals in Q4 from Q3 of this year. (more…)

By Steve Garcia -

As previously speculated in past articles, http://www.kingofalltrades.com/author/asm610

Liberty Media (NASDAQ: LCAPA, NASDAQ:LINTA) essentially confirmed they have plans in the works to take their satellite radio interests global this past week.  Liberty Media CEO Greg Maffei answered a question after his company’s 4th Quarter Conference Call regarding Worldspace (OTC: WRSPQ) and Liberty’s acquisition efforts aimed at Worldspace assets through Bankruptcy court.  Among his comments was a statement that Worldspace has L-Band spectrum licensing worldwide, and that they were looking for a creative way to monetize Sirius XM Radio,  converting their  shares in the company  is not an option they are likely to pursue at this time.  As a matter of fact, Mr. Maffei said that Board Chairman John Malone would be firmly against that option.

Looking at the broader picture, Liberty Media has an important connection in Europe through Liberty Global (NASDAQ:LBTYA, NASDAQ:LBTYB), which has dealt intensively with licensing and programming transmission regulations with many member countries of the European Union (EU).  With Worldspace having L-Band spectrum licensing globally, and both the XM infrastructure side of Sirius XM Radio and Worldspace having come from the same technologies, it’s not a big leap to speculate that the XM side of Sirius XM is a key part of the globalization planning.  Worldspace broadcasts in the 1467-1492 MHz frequency range of the “L” band, and Worldspace’s proprietary and patented technology is coincidentally used in each XM Radio receiver.  In fact, the Worldspace Global Content and Programming department used to provide approximately 10% of the original content music programming heard in America on XM Satellite Radio. (more…)