TORONTO – A growing subscriber base combined with an increase in average monthly subscription revenue per Subscriber (ARPU) helped to drive up revenues at XM Canada by 12.6%, the satellite radio company announced.
Revenue for its first quarter ended November 30, 2010 was $15.4 million, up from $13.7 million in the same period last year. Despite the increase in revenues, the company’s adjusted operating loss grew to $2.2 million from $1 million due to absence of the $1.2 million credit on reversal of CRTC Part II licence fee realized in the first quarter of 2010 plus some one-time marketing credits.
ARPU was $11.40 and $11.26 for the first quarters of 2011 and 2010, respectively, and self-paying subscribers grew 12.2% from 391,600 to 439,300.
"Our high-quality programming and content are the foundation of our ability to attract and retain subscribers", said president and CEO Michael Moskowitz, in a statement. "Despite challenges in the economy, revenue growth continues to be robust, driven by an increase in both ARPU and self-paying subscribers. The auto sector recovery and the expansion of our content delivery across multiple platforms – most notably in the online and mobile space – have also contributed to our solid results. As well, we continue on our disciplined business strategy, keeping operating costs in line to improve profitability as we continue to evolve the business."
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