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XM Still Shows Loss; Moves Toward OEM Sales

XM Still Shows Loss; Moves Toward OEM Sales

XM Satellite Radio is changing its focus from aftermarket retail sales to OEM sales; XM product offered both as factory and dealer-installed options. President/CEO Hugh Panero says the GM’s commitment to offer XM radios in 25 models later this year is almost a re-launch of the XM product.
For Q2, XM reported consolidated revenue of $3.8 million and EBITDA loss of ($79.3) million. For the same period a year ago, XM had no consolidated revenue and EBITDA loss of ($36.1) million. The variances between the financial results for the two quarters primarily reflect the company’s transition from building out its infrastructure to commercial operations, including sales and marketing activities. In April, XM completed a public offering of common stock and grossed $167 million, funding the company’s current plan into the first quarter of 2003.
With close to 137,000 subscribers, the satcaster says it’s beginning to better determine listener needs and starting to change its channel offerings, including offering a premium Playboy channel for an additional $2.99/month.
XM’s second-generation lower-cost chipset will be released by the end of the year in a new plug and play product called SkyFi.
Panero said XM still has “excellent performance” even in markets where it now competes with Sirius and that the company expected a bigger nationwide launch effort from Sirius in July.