Nov. 10 (Bloomberg) -- Sirius XM Radio Inc., the only U.S. pay-radio broadcaster, reported a wider third-quarter loss as plummeting automobile sales slowed subscription growth and the company wrote down assets after buying its only competitor.

The net loss was $4.88 billion, or $1.93 a share, hurt by the $4.75 billion writedown, the New York-based company said today in a statement. Revenue more than doubled to $488.4 million after Sirius bought XM Satellite Radio Holdings in July. That missed the $590.9 million average of eight analysts' estimates compiled by Bloomberg.

Sirius XM, home to Howard Stern and the National Football League, added 344,081 net subscribers in the quarter for a total of 18.9 million amid the biggest slowdown in consumer spending in 28 years. U.S. auto sales plummeted 32 percent in October in what General Motors Corp. called the worst month for the industry since 1945 after accounting for population growth.

``We think the environment sucks,'' Chief Executive Officer Mel Karmazin said on a conference call today. ``Unfortunately we don't have control over what cars are getting sold.''

The company recorded a charge of $4.75 billion to write down goodwill, an intangible asset associated with acquisitions. The expense was triggered by the drop in Sirius's stock price since it agreed to buy its only competitor in February 2007.

Excluding the charge and other items, the loss was 9 cents a share, wider than the 8-cent average of 11 analysts' estimates. Sirius reported a net loss of $120.1 million, or 8 cents, a year earlier.

Following the merger, the company eliminated duplicate jobs totaling 22 percent of the total of Sirius XM's combined workforce.

Auto Decline

Karmazin said in August Sirius XM could weather a decline in auto sales because carmakers were putting radios in more vehicles.

The $2.76 billion all-stock purchase of XM Satellite Radio Holdings Inc. by Sirius in July created a company with more than 18.5 million subscribers. Last week, Sirius XM predicted 19.1 million users by year-end, less than an earlier forecast for 19.5 million, and lowered next year's projection by almost a million, citing the slumping car business.

Sirius XM rose 1 cent to 27 cents at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have tumbled 91 percent this year.

Sirius XM, facing about $1 billion in loan repayments in 2009, including $210 million in convertible bonds in February, is in talks with banks to refinance. The stock has traded below $1 since Sept. 10 as investors grow concerned that Karmazin, 65, won't be able to manage the debt or meet growth projections.

Refinancing

``We are hopeful and confident about refinancing that debt,'' Karmazin said. ``The company is actively in discussions with both the holders of our debt and new lenders who are considering putting money in Sirius in the future.''

Churn, the rate at which customers canceled service, widened to 1.7 percent from 1.6 percent a year earlier, Sirius XM said.

Last month, Sirius XM announced it was issuing more stock to pay down $50 million of its $300 million in February 2009 notes and asked shareholders to approve a reverse stock split that could pave the way for additional stock sales. In August, Karmazin had said the company had no plans for a split.

Following the merger, the company eliminated duplicate jobs totaling 22 percent of the total of Sirius XM's combined workforce.

The combination of Sirius and XM will generate savings of $425 million next year, the company said in September. Sirius reiterated its forecast of adjusted earnings of $300 million in 2009 and said revenue should reach $2.4 billion in 2008 and $2.7 billion next year.

To contact the reporter on this story: James Callan in New York at jcallan2@bloomberg.net.

Last Updated: November 10, 2008 18:53 EST