XM Revenues, Losses Rise In Q3
October 25, 2007 at 6:09 AM (PT)
XM SATELLITE RADIO HOLDINGS INC. 2007 third-quarter revenue increased approximately 20% year-to-year to $287 million. Adjusted operating loss (formerly adjusted EBITDA) jumped from $2 million to $47 million, including $9 million in expenses related to the company's pending proposed merger with SIRIUS SATELLITE RADIO. Net loss widened from $84 million to $145 million. The company ended the quarter with approximately 8.57 million subscribers, an increase from about 7.19 million subscribers a year ago; third-quarter subscriber additions were 952,000 gross and 315,000 net. Subscriber acquisition costs rose from $59 to $70.
"During the third quarter, XM achieved year-over-year gains in both gross and net subscriber additions, despite weakness at retail, driven primarily by a record number of new automotive subscribers," said Pres/CEO NATE DAVIS. "We're already seeing the early results of the ramp in production of XM-equipped vehicles, which will provide XM with sustained subscriber growth for 2008 and beyond.
"We remain optimistic that our deal to merge with SIRIUS will close by the end of this year. In the meantime, we continue to work with the FEDERAL COMMUNICATIONS COMMISSION and the DEPARTMENT OF JUSTICE to further demonstrate that this merger is in the public interest and should be approved."