Net Losses for XM and Sirius in ‘06 Total $1.8 Billion

XM lost $718.9 million in 2006 and said it added about 1.7 million net subscribers for a total of about 7.6 million.
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XM lost $718.9 million in 2006 and said it added about 1.7 million net subscribers for a total of about 7.6 million.

Issuing its year-end financials, it said revenue increased 67 percent to $933 million. It also reported positive cash flow from operations in the quarter.

CEO Hugh Panero called it a “pivotal” year for the company. “Our financial metrics are heading in the right direction as marketing costs have declined and our revenues have increased.”

For the year 2006, XM reported a net loss of $718.9 million and an adjusted EBITDA loss of $166.2 million. XM also said it successfully completed a major recapitalization during the year, and this February it signed a sale-leaseback of transponders on the XM-4 satellite.

Sirius lost more than $1 billion in 2006. It says it now has more than 6 million subscribers and reached positive free cash flow in its fourth quarter.

The company added 2.7 million new subs, which it describes as a record year for either satellite company.

CEO Mel Karmazin predicted Sirius will approach $1 billion in total revenue and 8 million subscribers this year.

Sirius posted a net loss of $1.1 billion - $245 million of it in the fourth quarter - with annual adjusted net loss of $656 million and adjusted loss from operations of $513.1 million.

Total revenue for 2006 increased to $637.2 million, up 163%.

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