XM Reaches 8 Million Subs; Q1 Revenues Up, Loss Narrows
April 26, 2007 at 5:55 AM (PT)
XM SATELLITE RADIO HOLDINGS announced that it has passed the 8 million subscriber mark after finishing first quarter 2007 with 7.9 million subs. XM says that it added a gross subscriber count of 868,000 and net 285,000, off from first quarter 2006's gross 1 million and net 569,000.
The company also said that its first-quarter revenue rose 27% to $264 million, narrowing XM's net loss 18% to $122 million. Adjusted operating loss (formerly adjusted EBITDA) improved 45% to a loss of $27 million, which includes $8 million of merger expenses. Subscriber addition costs rose from $59 to $65 per subscriber, while cost per gross addition rose from $93 to $103. XM says it has increased cash on hand from $218 million to $319 million year-to-year.
"During the quarter, we improved our retail performance, experienced strong OEM gross additions, extended our distribution agreements with TOYOTA and HONDA, enhanced our customer service, maintained our churn rate at approximately 1.8% for the third consecutive quarter and strengthened key financial metrics for our business," said CEO HUGH PANERO. "These results were driven by the operational initiatives we put in place over the last several quarters."
XM reaffirmed its full-year guidance for 9 million to 9.2 million subscribers, $1 billion in subscription revenue, and improved cash flow with positive cash flow by full year 2008. It revised its adjusted operating loss prediction to $170 million-180 million.