Sirius Satellite Radio Inc. on Wednesday reported higher losses in the fourth quarter, despite an increase in the number of subscribers for the digital radio network.

The New York-based company reported a loss of $261.9 million, or 21 cents a share for the quarter ended Dec. 31, compared with a loss of $147.8 million, or 14 cents a share, in the same period a year ago. Revenues, on the other hand, increased nearly fivefold to $25.2 million from $5 million a year ago.

Sirius's higher losses were due to increased costs for subscriber acquisition, programming and sales and marketing. Adding to the rising expense for programming was the hiring last year of shock jock Howard Stern.

Sirius signed in October a five-year, $500 million contract with Stern, who is scheduled to move his popular morning talk show to Sirius in early 2006.

Sirius, however, increased the number of subscribers to 1.14 million as of Dec. 31, including 480,960 new subscribers added during the year. The company has increased its projected 2005 year-end subscriber estimate to more than 2.5 million.

For the full year, Sirius reported a net loss of $712 million, or 57 cents a share, on revenue of $66.9 million. The company reported a net loss of $314.4 million, or 38 cents a share, for 2003.

For 2005, the company expects to report a loss from operations of about $480 million on revenues of $210 million.