Sirius XM adds 257,000 subscribers in 4th qtr

NEW YORK, USA: Satellite radio provider Sirius XM said on Tuesday it added more than 257,000 net subscribers during the fourth quarter, the most since the third quarter of 2008, as it benefited from improvements in car sales.

The company also said it will report more than $100 million in free cash flow for the full year, after reporting negative free cash flow of $552 million in 2008.

Shares climbed 5 percent in after hours trading.

Sirius, which is home to radio personalities like Howard Stern and Martha Stewart, ended 2009 with 18.8 million radio subscribers.

"Improvements in automotive sales, conversion rates and better than anticipated self-pay churn suggest that the outlook for the auto sector and the effects of the economy on our business are beginning to improve," said Sirius Chief Executive Mel Karmazin.

It said the conversion rate to a self-pay subscription from a trial included in the sale of a vehicle was 46.4 percent up from 44.2 percent in the fourth quarter of 2008.

The company also reiterated its guidance and said it would report over $400 million in pro forma adjusted operating income, an improvement of over $500 million from the pro forma adjusted operating income for 2008.

Sirius XM plans to release full-year 2009 financial results next month.