XM Satellite Radio Reports Wider Loss, But Ups Revenue, Subscriber Base (1 Viewer)

HCI

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XM Satellite Radio Holdings Inc. on Thursday widened its losses in the first quarter, but doubled revenues and increased the number of subscribers by 72 percent.

The Washington, D.C., company reported a net loss of $149.2 million for the quarter ended March 31, compared with a loss of $119.9 million during the same period a year ago. Losses increased as subscriber acquisition costs rose to $62 per new subscriber in the quarter from $52 a year ago.

Revenues doubled to $208 million from $103 million a year ago. The increase was driven by year over year subscriber growth and a price hike that went into effect in the second quarter of last year. XM's customer base increased to 6.5 million subscribers at the end of the quarter from 3.8 million a year ago.

XM, which airs Major League Baseball, continues to spend heavily on programming to attract subscribers. In May, the company plans to debut a weekly one-hour music show hosted by rock legend Bob Dylan. In June and July it's scheduled to air the FIFA World Cup 2006 soccer tournament in English, and in September "Oprah & Friends," a talk show hosted by popular TV personality Oprah Winfrey.

http://www.techweb.com/headlines_week/showArticle.jhtml?articleId=187000411
 

Sirius_Rich

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The revenue was great, but I did not like the FCC and FTC 8-K's filed today. They more than likely were not necessary.
 

vurbano

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Sirius_Rich said:
The revenue was great, but I did not like the FCC and FTC 8-K's filed today. They more than likely were not necessary.

HUH??? Apparently revenues SUCK! they lost 150 million dollars! Is everyone blind? that means revenues of 208 million were 150 million short! Thats awful.
 

Sirius_Rich

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vurbano said:
HUH??? Apparently revenues SUCK! they lost 150 million dollars! Is everyone blind? that means revenues of 208 million were 150 million short! Thats awful.


In a year over year comparision the revenues were indeed great. " Revenues doubled to $208 million from $103 million a year ago. " The $150MM loss is awful, but we are talking about a growth equity.
 

VIPERS-PIT

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Feb 11, 2006
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How much of the loss was stern selling his stock!!! a lot of ford cars come with Sirius now with 1 year free sub. That could be a big part of the user growth. Sirius is also in Chrysler cars and trucks. XM only has GM and we all know were they are headed.
 

vurbano

On Double Secret Probation
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Apr 1, 2004
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Sirius_Rich said:
In a year over year comparision the revenues were indeed great. " Revenues doubled to $208 million from $103 million a year ago. " The $150MM loss is awful, but we are talking about a growth equity.
And what are the yearly losses? If they outweigh the revenues you are just losing more and more money until the banks close the doors on you. losses rose from 50+ to 60+ dollars per customer. So the more they grow the more they lose.
 

joedekock

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Jan 12, 2005
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If the subscriber base grew 72%... that means in 8 months, (or two quarters), they will see the turn around on the loss the have now. And in one year will have big earnings. That is assuming that of those new subscribers, 75% stick it out that long.

As the saying goes... sometimes you have to spend money to make it. And that is what is happening here.
 

topcats69

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Oct 22, 2004
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Not just XM is Losing Money the dog is too!! But if you look at the overall picture both are doing well. For Sat radio just a baby(young).
 

HCI

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hwkn said:
Even Directv is losing money every month[so XM/SIRIUS isn't alone].

http://news.yahoo.com/s/ap/20060504/ap_en_tv/earns_directv_5

LOS ANGELES - DirecTV Group Inc., the nation's largest satellite TV company, returned to a profit in the first quarter as stricter credit policies led to higher earnings per subscriber.


The company, based in El Segundo, said Thursday it earned $235.2 million, or 17 cents per share, for the three months ended March 31, compared to a loss of $41.4 million, or 3 cents per share, a year earlier. Revenue grew 8 percent to $3.39 billion from $3.15 billion.
 

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