Jock sticker shock: Stem payout putting hit on Sirius Radio.

Sirius Satellite Radio Inc. more than doubled its first quarter loss over the previous year, due largely to the costs of a deal that gave $225 million in stock to its celebrity shock jock, Howard Stem.

However, revenue nearly tripled as the company expanded its subscriber base to more than 4 million.

The 16-year-old satellite radio company's biggest cost was stock-based compensation, recorded under new accounting rules effective this year. Sirius reported stock compensation expenses of almost $285 million, $225 million of which was for Stern and his affiliates. The deal accounted for 20 cents per share of the 33 cents per share loss in the most recent quarter.

Stern, notorious for his on air comments and off-color behavior, was lured away from CBS Radio Inc. last year in a stock-based deal valued at $600 million in stock and cash. Sirius announced last week that Stern's show will now be offered over the Internet.

The agreement sparked mutual acrimony between Stern and CBS Radio, which filed a breach-of-contract lawsuit against Stem in February.

Sirius' chief executive, Mel Karmazin, formerly headed CBS Radio.

Sirius reported a net loss of $460 million, 33 cents a share, for the January through March period, compared to a loss of $194 million, or 15 cents a share, a year ago.

Sirius executives said they expect to have more than 6 million subscribers by the end of 2006; Sirius' larger rival, XM Satellite Radio Holdings Inc., expects to have about 9 million subscribers by year's end.

ANNE RILEY-KATZ

Staff Reporter