XM Satellite Losses Grow

XM Satellite Radio lost more money in the third quarter. But it says its business performance may be better gleaned from its subscriber growth, falling subscriber acquisition costs, improved operating margins and stable fixed expenses.
“We execute the hell out of this business,” said XM President/CEO Hugh Panero earlier this week when celebrating its 1 millionth subscriber.
In releasing financial results, XM reported a third-quarter net loss attributable to common stockholders of $145.6 million compared to $114.7 million for the same period a year ago. Competitor Sirius recently reported a Q3 net loss of $106.7 million.
For the first nine months of this year, its net loss is $434.7 million.
Subscriber acquisition cost in the quarter averaged $76 per customer, compared to $131 last year. Total revenue grew from $5.6 million to $26.9 million ,and XM attracted 237,395 new subscribers during Q3. Cash on hand as of Sept. 30 was $553 million.