Washington — XM Satellite Radio reported a 15 percent gain in revenue and a reduced operating and net loss for its second quarter, ended June 30.
Revenue increased $318 million, almost 15 percent more than second-quarter revenue of $277 million the previous year.
Second-quarter 2008 adjusted operating loss narrowed to $37 million, compared with a loss of $47 million in the second quarter of 2007. XM's second-quarter 2008 net loss improved to $120 million, compared with a second-quarter 2007 net loss of $176 million, the company said.
As reported yesterday, XM ended second-quarter 2008 with 9.65 million subscribers, a 17 percent increase, compared with 8.25 million subscribers at the end of the second quarter in 2007. This growth was driven, in part, by a 39 percent year-over-year increase in the number of gross additions through the automotive (OEM) channel. Second-quarter 2008 OEM gross additions were 857,000, which the company said was its fifth consecutive quarter of record OEM gross additions. This compared with 618,000 OEM gross additions in second quarter 2007.
In the second quarter of 2008, XM reported total gross additions of 1.08 million, and 322,000 net subscriber additions, compared with 942,000 gross additions and 338,000 net subscriber additions in the second quarter of 2007. Net OEM subscriber additions of 360,000 in the second quarter more than offset a loss of 38,000 net retail subscribers.
Second-quarter 2008 adjusted operating loss narrowed to $37 million, compared with a loss of $47 million in second-quarter 2007. XM's second-quarter 2008 net loss improved to $120 million, compared with a second-quarter 2007 net loss of $176 million.
XM continued to maintain stability in the key operating metrics of conversion rate and churn, both of which improved year-over-year, the company reported. Second-quarter 2008 conversion was 53.4 percent, compared with a second-quarter 2007 conversion of 52.7 percent. Second-quarter 2008 churn improved to 1.67 percent, compared with second-quarter 2007 churn of 1.84 percent.
XM announced its preliminary results for second-quarter 2008 yesterday in connection with an