XM Q2 Revenue, Losses Rise, Sub Count Projections Reduced
July 27, 2006 at 6:25 AM (PT)
XM SATELLITE RADIO's second quarter revenue rose 82% from the same period last year to $228 million, driven by 56% subscriber growth year-to-year to 6,899,871 subscribers. XM added 398,012 net subscribers in the quarter (from gross additions of 926,281). The company's net loss widened 82%, however, to $229 million, including $105 million in de-leveraging and other charges this year; adjusted EBITDA rose from a loss of $88 million to a gain of $46 million.
The company is revising its subscriber guidance, reducing its end-of-year target to 7.7-8.2 million, with further adjustments expected after third quarter. Despite the downward revision, blamed on "current marketplace dynamics and regulatory uncertainty concering 'plug-and-play' radios," the company reaffirmed its expectation that it will achieve positive cash flow by fourth quarter and for full year 2007, "although its ability to do so becomes challenging toward the lower end of the subscriber range."