Washington — XM Satellite Radio Holdings total fourth quarter revenue jumped nearly four times, to $33.5 million, from $9 million in the year-ago period, due primarily to 'significant' subscriber growth.
As of the end of December, XM reported 1.4 million subscribers, with the number of subscribers currently exceeding 1.5 million. The company recorded 430,580 net subscriber additions in the fourth quarter, a 46 percent increase from the end of the preceding three months, and more than the total subscriber net additions in 2002.
The 2003 holiday shopping season contributed heavily to the subscriber increase, said XM, with more than 100,000 names added the last seven says of December, including more than 23,000 on Christmas day.
'With over 1.5 million subscribers today, the foundation is in place to grow XM’s business to 20 million subscribers by 2010,' said Hugh Panero, president/CEO.
The cost to acquire a new subscriber dropped dramatically in the fourth quarter, said XM, with Cost Per Gross Addition (CPGA) hitting $125 in the three months, down from $238 in the fourth quarter of 2002.
For the 12 months, CPGA reached $137, a 68 percent reduction form the $425 recorded for all of 2002.
XM fourth quarter earnings before interest, taxes, depreciation and amortization (EBITDA) edged downward in the fourth quarter, ended Dec. 31, reaching $95.5 million, from $97.3 million in the year-ago period. Net loss for the fourth quarter increased to $162.9 million, from $155.9 million in the same three months a year ago.
Full-year revenue increased to $91.8 million, from $20.2 million in 2002. EBITDA loss for the 12 months hit $318.9 million, compared with $318 million the previous year. Excluding the impact of de-leveraging activities, 2003 EBITDA came in at a negative $294 million — the first time XM has improved EBITDA on a year-to-year basis.
Net loss for the 12 months increased to $584.5 million, from $495 million in 2002, reflecting increased depreciation, interest and de-leveraging expenses.
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