XM Still Losing Money But Satisfied With Progress

XM Satellite Radio executives say they’re happy with their first quarter financial numbers.
XM reported revenue of $13.1 million, an increase of $11.3 million compared to the first months of last year. Cconsolidated net loss available to common shareholders was $124 million, or $1.26 per share, compared to $117.7 million, or $1.56 per share, in last year’s Q1. EBITDA loss for the quarter was $63.3 million.
“Races are won or lost in the pits,” said XM President/CEO Hugh Panero, saying that XM “has been pretty good in the pits” with its service.
Executives said the company continues to make progress towards cash-flow breakeven in late 2004 while ramping subscribers and reducing costs now.
During the first quarter, XM incurred an average subscriber acquisition cost of $74. This compares to an average of $127 for first quarter 2002 and $96 in the fourth quarter 2002.
Approximately 5,000 new subscriptions have been generated since the company began its family plan. XM reports 483,075 subscribers as of March 31; of those, 135,916 were added in the first quarter.