XM Satellite Radio Reports Wider Loss, But Increased Revenue
Losses increased as subscriber acquisition costs rose in the quarter to $62 per new subscriber from $52 a year ago.
XM Satellite Radio Holdings Inc. on Thursday widened its losses in the first quarter, but doubled revenues and increased the number of subscribers by 72 percent.
The Washington, D.C., company reported a net loss of $149.2 million for the quarter ended March 31, compared with a loss of $119.9 million during the same period a year ago. Losses increased as subscriber acquisition costs rose to $62 per new subscriber in the quarter from $52 a year ago.
Revenues doubled to $208 million from $103 million a year ago. The increase was driven by year over year subscriber growth and a price hike that went into effect in the second quarter of last year. XM's customer base increased to 6.5 million subscribers at the end of the quarter from 3.8 million a year ago.
XM, which airs Major League Baseball, continues to spend heavily on programming to attract subscribers. In May, the company plans to debut a weekly one-hour music show hosted by rock legend Bob Dylan. In June and July it's scheduled to air the FIFA World Cup 2006 soccer tournament in English, and in September "Oprah & Friends," a talk show hosted by popular TV personality Oprah Winfrey.
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