Sirius Reports Wider Loss as Costs Mount

Sirius Satellite Radio Inc. reported a wider loss in the fourth quarter as costs for building its rapidly growing base of subscribers mounted.

The company, which added shock jock Howard Stern to its roster last month, lost $311.4 million, compared with a loss of $261.9 million a year earlier. The loss per share came in at 23 cents, a penny narrower than analysts surveyed by Thomson Financial expected, and wider than the loss of 21 cents a year earlier. Revenue more than tripled to $80 million.

Despite the relatively in-line results, shares of Sirius and its rival XM Satellite Radio Holdings Inc. fell Friday, a day after XM disclosed the sudden departure of one of its directors, who warned of a looming crisis if the company didn’t rein in costs.

Shares of New York-based Sirius fell 39 cents to $5.26.

Sirius ended 2005 with 3.3 million subscribers, triple the level of a year earlier. XM has more than 6 million subscribers.

Sirius also said it expected to be profitable next year. Sirius’ five-year contract with Stern was originally worth $500 million, but its value swelled to $600 million because of the appreciation of Sirius’ shares. XM has also signed big-ticket programming deals, including a $650-million pact with Major League Baseball.