TORONTO – Canadian Satellite Radio Holdings Inc.’s subscriber base increased 66% to a total of 395,400 subscribers at the end of the second quarter ended February 29, according to financial results released Wednesday.
The company still recorded a $17.8 million loss for the quarter, down from $27 million in the same period a year earlier. Much of the gain though was due to currency fluctuations.
“Subscriber growth, which is the true barometer of the health of our business, continues to increase significantly as we benefit from our many competitive advantages, including our agreements with 60% of the Canadian automotive market, extensive retail network with more than 5,500 outlets, unique strategic partnerships and exceptional programming,” said XM Canada president and CEO Michael Moskowitz.
He added, “With our current momentum, we are on our way to approaching cash flow break even as early as the third quarter of 2008. Given the strength of our business and our competitive position in the marketplace, we believe we are strategically well positioned for the future.”
The average monthly subscription revenue per subscriber (ARPU) increased to $11.61 for the second quarter of 2008 from $10.90 in the second quarter of 2007. That is due primarily to a good portion of the company’s subscribers transitioning from its previous basic monthly subscription price of $12.99 to the price of $14.99, said the company.
As a result of the larger subscriber base, revenue rose 89% to $9.2 million in the quarter from $4.9 million in the same period a year earlier. Revenue for the quarter ended November 30 was $8.1 million.
