XM Satellite Radio Holdings Inc. (XMSR) posted a narrower loss and an increase of 1.4 million subscribers to over 9 million subscribers for the 2007 year.

The company saw a 22% increase in revenue to $1.1 billion (with a "b") for the full year, and for the fourth-quarter saw a total revenue of $308 million, a 20% increase over the $257 million from the same period the year prior.

XM ended the year with over 9 million subscribers (9,027,000 to be exact), which is an 18% increase of over 1.4 subscribers from the year prior (roughly 7.6 million subscribers in 2006).

In the fourth-quarter, XM subscriber base increased by 460,000 net subscribers, and 1,130,000 gross subscribers.

In 2007, XM's automotive partners increased production of XM-equipped vehicles by 64% over 2006, with 3.5 million OEM installs and more than a million in the fourth quarter alone. This led to an increase of 766,000 gross OEM subscribers in the fourth quarter, resulting in 361,000 net OEM subscribers.

For the fourth-quarter, XM added 364,000 gross retail subscribers which resulted in an 99,000 net retail subscriber additions.

Net loss for the fourth quarter of 2007 narrowed by $18 million over the prior year to ($239) million compared to a net loss for the fourth quarter 2006 of ($257) million. Full year net loss improved by $37 million over the prior year to ($682) million compared to a full year 2006 net loss of ($719) million.

Full year 2007 adjusted operating loss of $238 million included merger and settlement charges of $86 million which were excluded from our guidance range of $170 million to $180 million loss. Fourth Quarter adjusted operating loss of $117 million included $58 million of the aforementioned $86 million of merger and settlement charges.

ARPU increased to $10.14 for 4Q07 (from $10.05 in 4Q06), and $10.39 for the full-year (from $10.09 in FY06). SAC increased to $87 for 4Q07 (from $74 in 4Q06), and $75 for FY07 (from $65 in FY06). CPGA increased to $140 for 4Q07 (from $128 in 4Q06) and $121 for FY07 (from $108 in FY06).

Full financials after the jump...

Aside from having some of the most entertaining photos in mainstream media, the New York Post also has a source "familiar with the situation" that has provided the publication with a status update at the DOJ.

According to this source, junior staffers were given a final chance to make their case against merger approval - known as "last rights" - to Antitrust Division Chief Thomas Barnett, before he signs off on the deal.

The results of these "last rights" are unknown - but this is fairly consistent with what the analyst community sources have been hearing for some time now.

In early November, Cowen & Company issued a report stating that the Antitrust Chief would approve the merger, "despite a staff recommendation against the deal."

A few weeks later, Bear Stearns wrote that junior staffers at the DOJ are recommending blocking the merger, but that higher officer deputy officials likely disagree and that Barnett will rule along with the higher officials in approval of the deal.

That was several months ago, and if the Post's sources are correct, then the DOJ's tune hasn't changed. Only time will tell for sure though.

[New York Post via Orbitcast Forums]
Thanks Squeaky!

Federal Communications Commission chairman Kevin Martin confirmed recently that the agency was coordinating efforts with the Department of Justice, but had yet to reach a final decision on the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Speaking informally at the NBA Tech Summit, Martin also said that while the Commission has received all the necessary information from the two satellite radio companies, they have yet to set a timeline in reaching a final decision.

According to paidContent:

"Traditionally the commission doesn't act on those after the Department of Justice --99 out of 100 times the Department of Justice goes first and the Department of Justice hasn't acted yet on that merger. We have some more information we requested at the beginning of the year from the companies so that we're trying to finalize our conclusions but we're coordinating with Department of Justice. I don't have a timeline."

Today marks the exact one-year anniversary since Sirius-XM merger was announced.

[paidContent]

Goldman Sachs is joining the rising chorus of analysts who claim that the Department of Justice is nearing approval over the Sirius and XM merger.

On Tuesday, Stanford Group said the DOJ is "near a ruling" on the satellite radio merger. Then on the following day, Stifel Nicolaus issued a note stating "increasing chatter" surrounding the pending DOJ ruling.

Today, Goldman Sachs chimes in stating that channel checks indicate that it now appears "less likely that the DOJ will block the merger."

"Longer term, merged or unmerged, our outlook for satellite radio is cautious given our view of unrealistic cash flow expectations, and hence valuation risk," he said in a client note.

[AP, 24/7 Wall St via Orbitcast Forums]

XM Satellite Radio will release their 4th quarter and full year 2007 financial results in just over two weeks: on Thursday, February 28th (two days after Sirius does the same).

XM has scheduled their conference call for that Thursday at 10am ET to announce and discuss the results.

As always, the call will be streamed online, or if you're not in front of a computer you can listen via telephone: just dial 877-265-5808 (toll-free) or 706-679-7931 (local number). The conference ID number is 35479749.

XM Satellite Radio has reworked its credit facility specifically for the Sirius-XM merger, as well as its agreements with General Motors, it was revealed today in an SEC filing.

First, they amended their current $250 million credit facility. Simply put: should the merger be consummated, the facility will continue to be available.

Next up, XM restated and amended their agreement with GM, rolling together the separate distribution and credit agreements. The terms are similar to that of the previous agreements, except for a new minimum pre-marketing cash flow threshold for 2008 that XM will need to meet in order to make draws under the GM credit facility in 2009.

XM has a $150 million credit facility with GM.

[SEC Filing]

Shares of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. jumped yesterday after Janco analyst April Horace upgraded both companies and speculated that the merger will be approved.

Horace raised her rating of XM shares to "Buy" from "Accumulate" on the assumption the deal will eventually close. She also upgraded her rating of Sirius shares to "Accumulate" from "Market Perform."

Janco had remained on the sidelines in terms of synergy estimates, because "we didn’t believe the synergies were that great." But in yesterday's note, and after nearly a year of analysis, Horace estimated that the combination could achieve cost savings of $4.1 billion over the next 6 years.

"It remains to be seen whether or not the DOJ approval will arrive before Sirius reports its financial results, sometime in the second half of February," Horace wrote. Sirius and XM have the option to cancel the merger (without penalty) if it doesn't win regulatory approval by March 1st, but Horace believes the companies will extend the agreement.

"We believe that the DOJ will make an announcement before March 1, and that the companies will extend the March 1 date if they are still waiting for FCC approval," the analyst said.

[AP]