* Q3 adjusted EPS break-even vs Street view for 2 cent loss

* Q3 revenue up 3 pct, beats expectations

* Adds 102,000 subscribers to end Q3 with 18.5 mln

* Sees subscriber, revenue growth in 2010

* Shares rise about 4 pct in afternoon trading (Adds analyst comment, updates stock activity)

By Franklin Paul

NEW YORK, Nov 5 (Reuters) - Sirius XM Radio Inc (SIRI.O: Quote, Profile, Research) posted a smaller quarterly loss on Thursday, helped by subscriber gains and the success of premium programming on its pay radio service, and said it expects to sees subscribers and revenue grow in 2010 as the auto industry recovers.

Shares of Sirius XM rose about 4 percent amid signs of resilience at the company, which earlier this year secured financing from John Malone's Liberty Media Corp (LINTA.O: Quote, Profile, Research) (LCAPA.O: Quote, Profile, Research) LMDIA.O to stave off critical debt deadlines.

It ended the quarter with 18.5 million subscribers to its service, which is home to programming including Howard Stern, Oprah Winfrey and Major League Baseball. That was up 102,000 from the second quarter of this year but down 2 percent from the third quarter of 2008.