TORONTO – Satellite radio company XM Canada saw its first quarter of fiscal 2008 revenue double to $8.1 million, as compared to the first quarter of fiscal 2007, the company announced late Monday.
For the three months ended November 30, 2007 (as reported last month by Cartt.ca) its subscriber base reached 350,300, an increase of 86% over the end of Q1 last year. Self-paying subscribers grew by 110% and the company’s “adjusted operating loss” improved by $2.3 million to $10.5 million.
The total number of vehicles with factory-installed XM satellite radios on the road or on order increases to 303,000.
The company’s subscriber acquisition costs, however, when through the roof. SAC in the quarter was double the $46 it was during the first quarter of last fiscal year, to $92. The increase in SAC is primarily attributable to the company’s change in focus from general marketing activities towards targeted marketing strategies via hardware promotions, outlines the press release. “In addition, the increase is offset by a 42% improvement in the cost per gross addition (CPGA) to $181 for the quarter ended November 30, 2007 from $311 for the comparable period in 2006. We expect CPGA to improve on an
annualized basis as we increase gross additions through improved cost efficient distribution channels. Average Revenue Per Unit (ARPU) was $11.30 and $11.27 for the three months ended November 30, 2006 and 2007, respectively,” reads the release.
"We are off to a strong start in 2008 as we boost performance of our four key growth drivers which include automotive, retail, programming and other strategic partnerships," said Michael Moskowitz, president and CEO, in the press release. "The automotive sector, the long-term driving force behind satellite radio, is rapidly growing and now represents more than 30% of our self-paying subscriber base.
"Our retail market share has improved significantly with the introduction of a new line of competitively-priced and technologically-superior products, the expansion of our distribution channels and the depth of our unrivalled programming," added Moskowitz. "Our momentum is building and we have yet to recognize the benefits of our strategic partnerships, which allow us access to more than 50 million points of contact every year through trial subscriptions and increased brand awareness. We expect 2008 to be another record year for XM Canada."
