XM’s Losses, Revenues Grow

For the fourth quarter 2003, XM Satellite Radio Holdings Inc. reported quarterly revenue of $33.5 million, increasing from $9 million in the fourth quarter 2002. XM’s full year 2003 revenue increased to $91.8 million, from $20.2 million in 2002.
The satcaster credited “significant subscriber growth” for the revenue increases.
XM’s net loss for the fourth quarter was $162.9 million as compared to a $155.9 million net loss in the fourth quarter 2002. For the full year, XM’s net loss was $584.5 million, compared to $495 million in 2002, reflecting increased depreciation, interest and de-leveraging expenses.
Though its net losses are larger, XM says its subscriber acquisition costs continue to drop. The Q4 Cost Per Gross Addition, which are subscriber acquisition costs plus advertising and marketing expenses, was $125. That compares to $238 in the fourth quarter of 2002. Full year 2003 CPGA was $137, representing a 68% reduction from the full year 2002 CPGA of $425.
As of Dec. 31, XM Radio reported 1,360,228 subscribers, with the number of subscribers now exceeding 1.5 million.