NEW YORK - Sirius Satellite radio reported fourth quarter results today that showed a loss of $85 million or 2 cents a share. Without the extinguishment of debt the company would have reported a profit of $ 4 million. The company is being valued at $11.05 billion if one counts the preferred stake of Liberty Media that will be converted into common shares. Counting long term debt the enterprise value of Sirius is a staggering $14 billion, ahead of Netflix.
Sirius saw revenue grow by 14% in 2010 compared to 2009, and 9% quarter over quarter. The company is expecting 6% revenue growth in 2011. Despite this slow revenue growth the company is being valued at 25 times adjusted EBITDA which is earnings before interest tax and depreciation plus loss on debt extinguishment. The company is being valued at 70 times adjusted earnings.
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