XM Projects Positive Cash Flow by Year-End

XM Satellite Radio Holdings Inc. is still losing money, judging by its fourth quarter and 2005 year-end financial report – but the gap between profit and loss is closing. So much so the company predicts it will achieve a positive cash flow by the end of this year, at $860 million in subscription revenue, and end the year with a projected 9 million customers.
In 2002, we ran a story saying the company had hoped to break even by mid-2004.
XM’s net loss for the fourth quarter of 2005 was $268.3 million compared to a net loss of $188.2 million in the fourth quarter of 2004. For the full year 2005, XM’s net loss was $666.7 million, compared to a net loss of $642.4 million in 2004.
For the fourth quarter of 2005, XM reported quarterly total revenue of $177 million, an increase of 113 percent over the $83.1 million total revenue reported in Q4 2004. XM’s 2005 total revenue was $558.3 million, an increase of 128 percent over the $244.4 million total revenue recorded in 2004.
XM said subscriber growth and increases in average revenue per subscriber in connection with its price increase implemented in the second quarter were responsible for the gains.
For the fourth quarter, subscriber acquisition cost was $89 compared to $64 in the same period last year. For full year 2005, SAC was $64, a slight increase from $62 in 2004.