XM Says First Quarter Was ‘Strong,’ But It Continues to Lose Money

XM Satellite said quarterly revenue surpassed fixed expenses for the first time.
In announcing its first quarter results, it said it had added 320,000 subscribers and now has 1.68 million. It claims an 83 percent market share in subscribers and a 70 percent market share among net new satellite radio retail subscribers added in the quarter. It also touts its reduction of the cost to add subscribers, saying it had cut the number to $106 per person, down about $50 from a year ago.
XM had quarterly revenue of $43 million, up 230 percent from the first quarter last year and up 30 percent from the fourth quarter.
However, the company reported an EBITDA loss of $78 million for the quarter, larger than the $63 million it lost at this time last year. Its net loss for the first quarter was $170.1 million compared to a $126.3 million net loss last Q1.
“This change reflects growth in the subscriber base and also includes a one-time non-cash charge of $25.6 million, a provision for deferred income taxes associated with our intangible assets,” it said.