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Street Weighs Sat Radio Synergies
After Sirius disclosed its estimates of what the financial performance could look like for a combined satellite radio entity, one Wall Street firm weighed in with its take on the company's projected financials, post-merger.
On Monday, Sirius released what it called financial guidance for a combined satellite radio company for 2009. Based on a preliminary analysis, Sirius said synergies generated from a merged entity, consisting of a combination of Sirius and XM, could be about $400 million next year. Adjusted EBITDA for a combined satellite radio company could be about $300 million in 2009, Sirius said.
Alden Mahabir of Utendahl Capital Partners said Sirius' post merger guidance is slightly below his firm's expectations. The analyst estimated that synergies generated from a satellite radio combination would amount to about $434 million in 2009, roughly 8 percent higher than Sirius' guidance. Mahabir also estimated that EBITDA from a merged satellite radio entity would be about $340 million, roughly 13 percent above guidance.
"Though guidance came in under our expectation, we do not view the variance as vastly material," Mahabir said. "That said, we believe others on the street may be more disappointed, as we believe our estimate for synergies may have been more conservative than others."
After Sirius disclosed its estimates of what the financial performance could look like for a combined satellite radio entity, one Wall Street firm weighed in with its take on the company's projected financials, post-merger.
On Monday, Sirius released what it called financial guidance for a combined satellite radio company for 2009. Based on a preliminary analysis, Sirius said synergies generated from a merged entity, consisting of a combination of Sirius and XM, could be about $400 million next year. Adjusted EBITDA for a combined satellite radio company could be about $300 million in 2009, Sirius said.
Alden Mahabir of Utendahl Capital Partners said Sirius' post merger guidance is slightly below his firm's expectations. The analyst estimated that synergies generated from a satellite radio combination would amount to about $434 million in 2009, roughly 8 percent higher than Sirius' guidance. Mahabir also estimated that EBITDA from a merged satellite radio entity would be about $340 million, roughly 13 percent above guidance.
"Though guidance came in under our expectation, we do not view the variance as vastly material," Mahabir said. "That said, we believe others on the street may be more disappointed, as we believe our estimate for synergies may have been more conservative than others."
