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XM 3Q Revenue Rise 57% as Subscribers Increase 43% Year Over Year |
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WASHINGTON, Nov. 7, 2006/Satnews Daily/ ― XM Satellite Radio Holdings Inc. (NASDAQ:XMSR) said on Monday third quarter 2006 revenue increased by 57 percent year over year to approximately $240 million resulting in reduction of net loss for the quarter by 36 percent to $84 million from the third quarter 2005.
XM said it ended the third quarter with 7.185 million subscribers, an increase of 43 percent over the prior year's third quarter.
“The more than 2.8 million gross subscriber additions year to date underscore the demand for XM,” said Hugh Panero, CEO of XM. He said the increase in revenue was driven by subscriber growth year over year, and increases in average revenue per subscriber.
XM's net loss for the third quarter of 2006 was $84 million compared to a net loss of $132 million during the third quarter of 2005, a 36 percent improvement. For the third quarter of 2006, the adjusted EBITDA loss (non-GAAP) substantially improved to a loss of just $2 million versus an adjusted EBITDA loss of $70 million in the third quarter of 2005.
For the third quarter 2006, XM recorded gross subscriber additions of 868,007 and net subscriber additions of 286,002. XM finished the third quarter 2006 with a total of 7,185,873 subscribers, representing a 43 percent increase over the 5,034,642 subscribers at the end of the third quarter 2005.
XM's subscriber acquisition cost (SAC), a component of cost per gross addition (CPGA) was $60 in third quarter 2006 compared to $53 in the third quarter of 2005. CPGA was $93 compared to $89 in the third quarter of 2005.
Based on the third quarter results, XM projects that it will end the year with total subscribers of between 7.7 million and 7.9 million, well within the previously announced guidance range. XM also expects to achieve positive cash flow from operations for the fourth quarter 2006.
XM added its 2006 subscription revenue is expected to be in the $810 million to $815 million range and adjusted EBITDA Loss is expected to be in the $205 million to $215 million range.
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