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XM Doubles Revenue, Adds 569K Subs

XM Satellite Radio more than doubled its total revenue in the first quarter, notching $208 million for the three months, compared with a year-ago $102.6 million. The increase was driven by “significant” subscriber growth year-over-year, and increases in average revenue per subscriber due to a price increase implemented in the second quarter last year.

The company’s operating loss for the first quarter, ended March 31, dipped downward to $100.8 million, from a loss of $105.3 million year-on-year. The quarterly net loss, however, increased to $149.2 million, up from a loss of $119.9 million the previous year.

In the first three months, XM recorded net subscriber additions of 568,902, up from 541,140 in the same period in 2005. The satellite radio company finished the first quarter of 2006 with 6.5 million subscribers, a 72 percent jump over the 3.8 million registered at the end of the first three months the previous year.

Average monthly subscription revenue per subscriber increased to $10.07 in the first quarter, up from a year-on-year $8.84.

Yet, subscriber acquisition costs rose to $62 in the quarter, up from $52 the prior three months. Cost per gross addition moved up to $94 in the three months, compared with $90 in the same period in 2005.

“XM delivered solid results on key financial metrics during the first quarter,” said Hugh Panero, president/CEO. “XM added more than 568,000 new subscribers at efficient subscriber acquisition cost levels, and is positioned for continued strong growth in 2006 with our outstanding content and the introduction of five new radio models.

“With our first-quarter subscriber growth, we remain on track to reach 9 million subscribers and positive cash flow from operations by year end,” Panero said.

The company reported a loss before interest, taxes, depreciation and amortization (EBITDA) of $83.5 million in the first quarter, including $18.4 million in charges and $12.1 million for compensation expenses, among others, compared with an EBITDA loss of $71.3 million in the same quarter a year earlier.