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XM Satellite Radio Q3 Profits Plummet

Washington – XM Satellite Radio Holdings substantially increased its consolidated revenue in the third quarter, reaching $5.6 million, up from $1,000 in the year-ago period, but the company’s net loss rose dramatically to $109 million for the period.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), however, increased to a negative $67.1 million in the third quarter, ended Sept. 30, compared with negative EBITDA of $49.8 million in the same three months last year.

Net loss for the quarter climbed to $109.6 million, up from a net loss of $65 million in the same three months in 2001.

XM ended the third quarter with 201,544 subscribers, adding 64,836 subscribers, representing a 47 percent increase, since the previous three months.

For the nine months, XM consolidated revenue jumped to $11.2 million, compared with $1,000 in the same period last year.

EBITDA for the nine months came in at a negative $222.3 million, compared with a negative $125.6 million in the same nine months in 2001.

Net loss for the nine months increased to $339.1 million, up from $140.4 million in the year-on-year.

XM, in continuing to seek substantial additional funding, said it has been in discussions with General Motors regarding deferral of up to$200 million in payment obligations. This would include exchanging these payments for certain debt and convertible securities, as well as the introduction of an arrangement that would permit certain payments to be made in either stock or cash.

XM’s ability to execute any arrangement regarding deferral of payments to GM is contingent upon certain modifications to XM’s capital structure and the company securing at least $200 million in additional financing. No terms have been finalized with GM.

To obtain the $200 million in additional financing, XM said it is in discussion with potential outside investors as well as current major shareholders.