XM Q3 Revenues, Subscribers, Losses Up
October 27, 2005 at 7:37 AM (PT)
XM SATELLITE RADIO HOLDINGS says that its third quarter revenue leaped 153% year-to-year to $153 million and its subscriber count jumped by 617,152 net additions to 5,034,642, doubling the number at the end of third quarter 2004. The company's net loss widened from $118 million to $131.9 million, with EBITDA loss also widening from $62.9 to $73.8 million.
The company has reaffirmed its guidance that it will have over 6 million subscribers by the end of 2005.
On XM's conference call, HUGH PANERO said that "the key to adding large volumes" to XM's subscriber base is the company's relationship with auto manufacturers like GM, NISSAN, HYUNDAI (which plans to offer XM as standard equipment on all models), and HONDA. PANERO said that he expects the addition of new small-sized receivers, portable receivers, and several XM-ready home receivers, to boost holiday sales. PANERO said that DELPHI's recent Chapter 11 filing will not interrupt the flow of the company's XM receivers to retail (the receivers are built overseas).
PANERO said that MP3-playing portables will be delayed into first quarter 2006 but denied that the delay was due to RIAA concerns, saying that the SAMSUNG-made devices were always primarily projected for first quarter and that the company had only hoped to have some available earlier.