TORONTO – Total revenue increased 39% in the second quarter at Canadian Satellite Radio Holdings Inc., the parent company of XM Canada.
Revenue for the quarter ended February 28, 2009 was $12.8 million, up from $9.2 million for the second quarters of 2009 and 2008, respectively, the company said in an announcement.
But the company has yet to break even, reporting an adjusted operating profit (loss) of $6.0 million, a $3.0 million improvement from the same period last year.
Calling the improvement “significant”, XM Canada said in the announcement that it was driven primarily by a $3.6 million revenue improvement and a reduction of $1.2 million in marketing expenses versus the second quarter of 2008, and offset by a $1.5 million increase in “cost of revenue”.
"Our results are encouraging considering these challenging economic times," said Michael Moskowitz, president and CEO, in the announcement.
"We continue to grow revenue and increase the number of self-paying subscribers. We are focused on executing against our business plan, which means pursuing a number of key growth initiatives and opportunities and managing costs across every level of the business in order to achieve our two key long-term objectives: sustainable cash flow and profitability," he continued.
The company’s self-paying subscribers grew 40%, from 251,400 in 2008, to 351,200 in 2009.
It’s average monthly subscription revenue per subscriber (ARPU) declined 1% year-over-year to $11.50 from $11.61 for the second quarters of 2009 and 2008, respectively, which the company attributed to there being fewer days in the second quarter of 2009.
