TORONTO – After marking its 17th consecutive quarter of revenue growth, XM Radio was able to shrink its net loss by almost $30 million.
Net loss decreased by $29.8 million to $1.7 million, due in part to a foreign exchange change of $20.4 million and a gain of $7.1 million through debt repurchase, the company announced.
Revenue increased 10% to $13.7 million from $12.5 million for the first quarter of 2010 and 2009, respectively, which the digital audio entertainment company attributed to a growing subscriber base.
ARPU declined from $11.94 to $11.26 in the first quarter of 2010 compared to the first quarter of 2009 due to a “significant increase” in automotive self-paying subscribers which have a lower ARPU, and to promotional discounts offered to consumers to encourage adoption of multi-year plans and increase retention.
Cost per gross addition was $83, down from $130 in the same period last year as a result of lower advertising and marketing costs as well as lower direct costs to acquire a subscriber. The company said that it expects to continue to manage CPGA in this range as it grows its subscriber base through cost efficient distribution channels.
President and CEO Michael Moskowitz described the company as being “in a very good position”, particularly as the economy begins to show signs of recovery.
"We have consistently grown our revenue, increased subscribers and improved our overall operations”, he said in a statement. “We have a strong foothold in the auto industry where we can grow our presence as auto sales increase, especially in Canada. The introduction of a number of new products and services is attracting customers online and on the go.”
