XM Gains In Q3 Revenue, Subs
by Greg Tarr -- TWICE, 10/25/2007
Washington — XM Satellite Radio reported 20 percent more revenue and a gain of 1.36 million subscribers during the third quarter.
XM said revenue for the third quarter ended Sept. 30 increased approximately 20 percent year over year to $287 million compared with $240 million in the 2006 third quarter.
XM ended the quarter with approximately 8.57 million subscribers compared with approximately 7.19 million subscribers in the prior year period.
“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 Nate Davis, president/CEO, XM Satellite Radio. “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.”
For the third quarter, adjusted operating loss (formerly adjusted EBITDA) was $47 million compared with a loss of $2 million in the same period of 2006. The 2007 third quarter adjusted operating loss includes $9 million in expenses related to the company's pending merger with Sirius Satellite Radio. XM's 2007 third-quarter net loss was $145 million compared to the 2006 third quarter net loss of $84 million.
In the 2007 third quarter, XM recorded gross subscriber additions of 952,000 and net subscriber additions of 315,000 compared with 868,000 gross additions and 286,000 net subscriber additions in the 2006 third quarter.
In the 2007 third quarter, XM's subscriber acquisition costs (SAC), a component of cost per gross addition (CPGA), were $70, including approximately $10 related to increased factory installations by new automotive partners. This compared to $59 in the third quarter of 2006. CPGA in the 2007 third quarter was $116 compared with $94 in the third quarter of 2006.
XM will have an analyst conference call later this morning where the subject of the merger with Sirius is expected to be discussed.
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