• by Erik Sass  @eriksass1, May 2, 2007

Sirius Satellite Radio's quarterly loss shrank in the first three months of 2007 compared to the same period last year, according to the company's financial statement on Tuesday. The decrease is largely due to the absence of promotional and contractual expenses associated with the move of shock jock Howard Stern from CBS to Sirius in January 2006.

Overall, the company recorded a net loss of $144.7 million, down substantially from the $458.5 million loss in the first quarter of 2006. Meanwhile, revenue rose 61% to $204 million, just below the figure of $212 million predicted by analysts. The company continued growing in the first quarter, with 556,490 net subscriptions added to finish at about 6.6 million. The average cost of acquiring a new subscriber--a main expense driver--fell from $113 in the first quarter of 2006 to $104 this year.

The company's improved results come amid debate over its controversial proposal to acquire XM Satellite Radio, its larger competitor. While Sirius and XM say the deal will benefit consumers through greater choice, including carte blanche selection of content linked with lower subscription fees, the proposed deal is encountering fierce opposition from terrestrial broadcasters, including the National Association of Broadcasters. The NAB has called into question the companies' assertion that they face new competition from new technologies like portable MP3 players and digital streaming radio on the Internet--a key factor in their argument that the FCC should waive a rule forbidding them to combine

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