TORONTO – XM Canada saw its second quarter revenue grow by 9% year-over-year, marking the satellite radio company’s 18th consecutive quarter of revenue growth.
For the quarter ended February 28, 2010, revenue reached $13.9 million, up from $12.8 million last year, due in large part to a growing subscriber base. Self-paying subscribers were up 15% to 402,900 from 351,200 in 2009. (XM Canada recognizes only those customers that are paying for its service as self-paying subscribers).
"It has been another solid quarter for XM Canada", said president and CEO Michael Moskowitz, in a statement. "Our subscriber base has continued to grow while we have further contained our operating costs. We are seeing signs of economic recovery, particularly in the all-important automotive sector, where XM is standard equipment in more than 125 different vehicle models.”
Adjusted operating loss improved to $2.9 million from $5.4 million from the second quarter of 2009, which the company attributed to a $1.2 million increase in revenue, and a $1.7 million decrease in marketing spend offset by higher cost of revenue and general and administrative expenses in the period.
Average monthly subscription revenue per subscriber (ARPU) dipped to $11.14 from $11.50 last year 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.