http://phx.corporate-ir.net/phoenix.zhtml?c=115922&p=irol-IRHome
New radios shown at CES will be available in 2nd quarter.
Oprah signed for 3 years.
Weak auto market hurt 4th quarter subscribers.
Toyota & Hyundai launch in 2007 models.
Nissan launches in 2008 .
Expect positive cash flow in 4th Quarter in 2006.
898,000 subscribers added in 4th Quarter.
4th Quarter churn 1.75%. Expect higher churn in 2006.
42% subscribers are annual or multi-year plan subscribers.
19% of subscribers are family plan subscribers.
$711 million in the bank. Adequate funding till positive cash flow.
Looking for 9 million subscribers by the end of '06
Question Time: (this ought to be good since the anaysists were blindsided by the bad news).
4th quarter was an aberation for subscriber aquisition cost. XM had 44% 4th quarter share.
Stern effect? Remains strong in 1st quarter.
Board resignation? He was concerned about spending and wanted positive cash flow sooner. XM is managing rapid growth vs. positive cash flow.
Conversion rate (new car owners get 3 months free and then have to subscribe)? Rate is going down. (not good) Higher end cars & trucks have higher conversion rate. (dodged answering question)
Cash flow positive in 2007? Yes
Return to normal vs 4 Qtr numbers? Yes 4th quarter was aborignation.
Oprah have any effect yet? She will promote XM. XM sending promo materials to stores.
New radios shown at CES will be available in 2nd quarter.
Oprah signed for 3 years.
Weak auto market hurt 4th quarter subscribers.
Toyota & Hyundai launch in 2007 models.
Nissan launches in 2008 .
Expect positive cash flow in 4th Quarter in 2006.
898,000 subscribers added in 4th Quarter.
4th Quarter churn 1.75%. Expect higher churn in 2006.
42% subscribers are annual or multi-year plan subscribers.
19% of subscribers are family plan subscribers.
$711 million in the bank. Adequate funding till positive cash flow.
Looking for 9 million subscribers by the end of '06
Question Time: (this ought to be good since the anaysists were blindsided by the bad news).
4th quarter was an aberation for subscriber aquisition cost. XM had 44% 4th quarter share.
Stern effect? Remains strong in 1st quarter.
Board resignation? He was concerned about spending and wanted positive cash flow sooner. XM is managing rapid growth vs. positive cash flow.
Conversion rate (new car owners get 3 months free and then have to subscribe)? Rate is going down. (not good) Higher end cars & trucks have higher conversion rate. (dodged answering question)
Cash flow positive in 2007? Yes
Return to normal vs 4 Qtr numbers? Yes 4th quarter was aborignation.
Oprah have any effect yet? She will promote XM. XM sending promo materials to stores.
