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XM Q3 Revenue Jumps Five-Fold

11/06/2003 09:25:00 AM Eastern

Washington - Augmented by positive subscriber results, XM Satellite Radio Holdings reported third quarter revenue of $26.9 million, nearly a fivefold increase over the $5.6 million registered in the year-ago period.

The satellite radio service provider registered a record net subscriber increase of 237,395 in the third quarter, ended Sept. 30, up 34 percent from the end of the previous quarter and four times the 64,836 subscribers on board at the end of the third quarter in 2002. As of Sept. 30, XM reported 929,648 subscribers.

'Complementing this remarkable subscriber performance is XM’s track record of achieving financial and operational milestones,' said CEO Hugh Panero. 'This focus on successful operational execution is a differentiation of our business and a clear indication that XM is focused on growth, while minimizing costs and creating long-term value for our shareholders.'

XM widened both its third quarter operating and net losses, recording a $100.l million loss from operations, compared with a loss of $95.7 million year on year, and a $133.4 million net loss, compared with $109.6 million in the same quarter last year.

XM did reduce its loss from earnings, before interest, taxes, depreciation and amortization (EBITDA) in the third quarter, down to $64.4 million, from a negative EBITDA of $66.5 in the same three months a year ago. The third quarter loss included $12.6 million in charges and financial transactions.

Measuring the gross costs to gain each new subscriber, XM paid out $127 per subscriber gained in the third quarter, compared with $385 in the same period a year ago. In terms of net, XM spent a more modest $76 per subscriber in the third quarter, compared with $131 per subscriber in the same period last year — a 41 percent reduction.

Total revenue for the nine months reached $58.3 million, up from $11.2 million in the same period last year. The operating loss for the period widened to $323.7 million, up from a loss of $297.9 million year over year. The net loss came in at $421.6 million, compared with $339.1 million in the same nine months in 2002. EBITDA reached a negative $223.4 million, up from a negative $220.6 million in the same time frame a year ago.