TORONTO – XM Canada said late Wednesday that its total fiscal 2007 revenue tripled (to $21.2 million) as the satellite radio company’s subscriber base increased 102% over 12 months to 306,300 customers as of August 31, 2007, its fiscal year end.
In the fourth quarter, XM Canada added 32,900 self-paying subscribers and total revenue doubled to $6.8 million.
"We had an exceptional fourth quarter as our exclusive 10-year agreement with the NHL attracted new subscribers across the country," said John Bitove, chairman and CEO of parent company Canadian Satellite Radio. "In addition, while retail sales have been slow for much of the year, we are pleased to report that in September the satellite radio category grew by 39% and XM Canada captured 50% of all satellite radio sales through major retailers. Canadian consumer appetite for satellite radio is strong and it is clear we are gaining momentum entering the holiday shopping season."
Adjusted operating loss for the three months ended August 31, 2006 and 2007 was $14.4 million and $12.2 million respectively, an improvement of $2.2 million. As the company continues to grow its subscriber base and manage programming, general and administrative and marketing costs, it expects adjusted operating loss to improve.
Subscriber acquisition costs were $59 and $58 for the three months ended August 31, 2006 and 2007, respectively. Cost per gross addition improved by 24% to $183 for the quarter ended August 31, 2007 from $242 for the comparable period in 2006. Average revenue per unit was $11.78 and $11.33 for the three months ended August 31, 2006 and 2007, respectively.
"We are pleased with our strong fiscal management and accomplishments in 2007," said Bitove. "This was a solid year of growth and cost reductions and with our exclusive automotive installations in 2008, we are positioned to meet our objective of being free cash flow positive in the fourth quarter of 2008."
