Buoyed by a subscriber hike of 171 percent in the first three months of 2002, over the fourth quarter of last year, XM Satellite Radio also claimed higher-than-consensus Wall Street expectations for revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the first three months.
XM reported the addition of 48,509 subscribers in the first quarter. This more than doubled the company's number of subscribers, to 76,242 total subscribers as of March 31.
For the three months, which was the company's first full quarter of nationwide service, XM reported consolidated revenue of $1.8 million, compared with no revenue in the year-ago period.
The satellite radio service company nearly doubled its EBITDA loss to $75.9 million in the first quarter, up from $40 million in the same three months in 2001. Net loss reached $112.3 million, compared with $37 million year over year.
XM said it remains on track to end the year with 350,000 new subscribers. Although the majority of XM subscriber additions have been through consumer retail distribution, significant growth is expected from the auto sector when XM becomes available later this year in a number of 2003 models.
Meanwhile, the company has priced a public offering of 13.4 million shares of Class A common stock at $11.50 per share. The offering is expected to raise gross proceeds of $154 million, which will be used primarily for marketing expenses, systems and other general corporate purposes. The offering is expected to fund the company's operations into the latter half of the first quarter in 2003.