XM Canada Q3 Revenues, Subs Up; Loss Narrows
July 17, 2007 at 5:44 AM (PT)
XM CANADA is up to 269,000 subscribers as of the end of its fiscal third quarter on MAY 31, according to CANADIAN SATELLITE RADIO HOLDINGS' quarterly financial report. Revenue rose 144% year-to-year to C$5.7 million, credited directly to subscriber increases, although average revenue per unit fell from C$13 to C$11.70. Subscriber acquisition costs fell from C$69 to C$40, and cost per gross addition fell from C$241 to C$178. Adjusted operating loss narrowed from C$13.2 million to C$9.8 million.
"Our second anniversary is quickly approaching and marks a departure from our phase one launch period into a new phase of growth and development," said Chairman/CEO JOHN BITOVE. "We are pleased with our performance this quarter, and as we move forward we will continue to search for new opportunities to maintain our aggressive growth strategy and build our subscriber base. Our long-term agreement with the NHL is an example of our commitment to growth."
However, on the company's conference call, BITOVE complained, "As a key stakeholder and chairman, I'm not happy with our stock price performance to date. I believe the current price is not justified." BITOVE said that XM is "committed long term to running a great brand, having a great business and making our shareholders happy. Whatever anyone else wants to do short term, it's up to them. Long term, we're here to stay, and that's our mission."