NEW YORK – XM Satellite Radio Holdings in the U.S. today announced a 43 per cent increase in subscribers year over year, helping to boost third quarter 2006 revenue by 57 per cent. At the same time, it reported a 36 per cent reduction in the net loss for the quarter.
XM ended the third quarter with 7,185,873 million subscribers, compared to 5,034,642 at the end of the third quarter 2005. For the third quarter 2006, it recorded gross subscriber additions of 868,007 and net subscriber additions of 286,002.
Its third quarter 2006 revenue of $240 million compares to the $153 million reported in the third quarter 2005. This increase in revenue was driven by subscriber growth year over year and increases in average revenue per subscriber, the company said. The net loss for the quarter was reduced to $84 million from $132 million in the third quarter 2005.
"The more than 2.8 million gross subscriber additions year to date underscore the demand for XM," said Hugh Panero, CEO, XM Satellite Radio. "With significant growth in revenue and narrowing losses, we are on track for positive cash flow from operations in the fourth quarter of this year."
XM projects it will end the year with total subscribers of between 7.7 million and 7.9 million, and expects to achieve positive cash flow from operations for the fourth quarter 2006.
The company also said its position as a satellite radio provider in new cars is growing. It has now reached partnerships with eight vehicle manufacturers.
Its fourth satellite, XM-4, was successfully launched Oct. 30 and is expected to be in commercial service in mid-December.
