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XM Doubles Q3 Sales, Subs Up 75%

11/08/2004 02:00:00 AM Eastern

XM Satellite Radio more than doubled third-quarter revenue, while subscriber additions for the three months jumped 75 percent.

Third-quarter revenue at the satellite radio service provider increased to $65.4 million, up from $26.9 million in the year-ago period. XM — which reported 2.52 million total subscribers as of Sept. 30, the end of the quarter, compared with 929,648 at the end of the third quarter in 2003 — recorded a net-subscriber addition of 415,671 in the third quarter, up from 237,395 in the year-earlier period.

XM reduced its net loss in the third quarter to $118 million, compared with a net loss of $133.4 million in the same three months last year. The company's negative earnings before interest, taxes, depreciation and amortization (EBITDA) reached $62.9 million, compared with a negative $64.4 million year-on-year.

“XM's subscriber momentum, combined with our outstanding new programming and unmatched technology, sets the table for an outstanding holiday season and beyond,” said Hugh Panero, president/CEO. XM claimed that it has garnered 80 percent of the satellite radio market and won two out of three new subscribers at the retail level in the quarter.

XM reported it continues to focus on successful business execution as indicated by “significant” subscriber growth, declining cost per gross addition (CPGA) and improved operating margins. In the third quarter, CPGA hit $89, down from $127 in the third quarter of last year. XM's CPGA represents the fully-loaded cost to acquire each new subscriber, including subscriber acquisition costs of $57, which were down from a year-over-year $76.