XM Sees Revenue, Subs Up, Net Loss Narrowing For Q3
November 6, 2006 at 5:41 AM (PT)
XM SATELLITE RADIO HOLDINGS' third-quarter revenue jumped 57% to $240 million, and net loss narrowed 36% to $84 million. The company ended the quarter with 7,185,873 subscribers, a 43% year-to-year increase, with net additions of 286,002 for the quarter from gross additions of 868,007. Subscriber acquisition costs rose from $53 to $60 year-to-year, with Cost Per Gross Addition up from $89 to $93.
CEO HUGH PANERO said, "The more than 2.8 million gross subscriber additions year to date underscore the demand for XM. With significant growth in revenue and narrowing losses, we are on track for positive cash flow from operations in the fourth quarter of this year."
XM projects 7.7 million-7.9 million subscribers at the end of the year and expects positive cash flow from operations for fourth quarter. 2006 subscription revenue is expected to be in the $810 million-$815 million range for 2006, with adjusted EBITDA loss of $205 million-$215 million.