XM reports Q3 losses but revenue doubles!

[GFE PIMP]

XM Satellite Radio (XMSR (http://tools.thestreet.com/rmy/quotes.html?pg=qcn&symb=XMSR):Nasdaq - commentary (http://find.thestreet.com/cgi-bin/texis/find/results.html?tkr=XMSR) - research (http://thestreet.multexinvestor.com/reports.aspx?ticker=XMSR)) said revenue more than doubled from a year ago as the company posted its latest quarterly loss.

The Washington, D.C.-based pay radio company lost $118 million, or 59 cents a share, in the quarter ended Sept. 30. A year ago XM lost $133 million, or $1.12 a share. Revenue surged to $65 million from $27 million a year earlier.

Meanwhile, XM said it is spending less to bring each new user aboard. The company's cost per gross addition, which reflects subscriber acquisition costs plus marketing and ad spending, fell 30% from a year ago to $89. That figure is important because XM and rival Sirius (SIRI (http://tools.thestreet.com/rmy/quotes.html?pg=qcn&symb=SIRI):Nasdaq - commentary (http://find.thestreet.com/cgi-bin/texis/find/results.html?tkr=SIRI) - research (http://thestreet.multexinvestor.com/reports.aspx?ticker=SIRI)), while well-loved by growth-seeking tech investors, have also drawn vocal critics who wonder how long the companies can go on at their current cash-incinerating pace.

XM said Thursday it had $448 million in cash and short-term investments at Sept. 30, along with a $135 million credit line from partner General Motors (GM (http://tools.thestreet.com/rmy/quotes.html?pg=qcn&symb=GM):NYSE - commentary (http://find.thestreet.com/cgi-bin/texis/find/results.html?tkr=GM) - research (http://thestreet.multexinvestor.com/reports.aspx?ticker=GM)). Both XM and Sirius have focused recently on signing deals with big carmakers that make their gear factory-installed options on many vehicles.

The news comes at a pivotal time for the satellite radio companies, which saw their shares rocket in 2003. Both XM and Sirius are now trying to line up star broadcasters in order to draw in more subscribers. Last month Sirius signed up New York shock jock Howard Stern in a deal that ignited the stock but also raised concerns about the company's balance sheet. For its part, XM has signed rival shock jocks Opie and Anthony and has also landed former public radio host Bob Edwards. Early Thursday, XM was down 16 cents at $33.18.

[chopsueychris]

ererrrrrrrrr doesnt sound like rainbows and sunflowers in that article.

I thought these things..well xm atleast was doing better than it really is? :(

[GFE PIMP]

Actually subscriptions are up by more then double. They were on average doing 75K per month. In the last quarter they had a total of 415K new subscribers (That compares with 237,395 additions in the prior third quarter), which averages to a little over 138K subs in each of the last 3 months.

One can only assume it has to do partly with the Virus spreading. Also, I believe the loss they reported in part had to do with the new deals they were working on (i.e. GM and MLB).

To hit over 3 million by year end is huge. Meanwhile, in Sirius land, who knows if they will last past next year.

[chopsueychris]

i thought sirius was in financial trouble..but seeing as if Xm has only enough physicial cash to sustain for a year as it seems without going the way of sirius and taking out loan and issuing bonds... fuck what do i know about this shit?
either way i feel xm to be a strong product with lots of goodies to sell to users and entice new customers. The doggie doesnt have it.

[Vinman]

http://xmradio.com/newsroom/screen/pr_2004_11_04.html




XM SATELLITE RADIO HOLDINGS INC. ANNOUNCES THIRD QUARTER 2004 RESULTS

XM Exceeds 2.5 Million Subs; Adds 415,671 Subs In Quarter
XM Signs 11-Year Deal to Carry Major League Baseball Starting 2005
XM Unveils MyFi, First Wearable Satellite Radio

Washington D.C., November 04, 2004 -- XM Satellite Radio Holdings Inc. (Nasdaq: XMSR) today reported its financial and operating results for the third quarter ended September 30, 2004. As of September 30, 2004, XM Radio reported 2,516,023 subscribers. This represented net subscriber additions of 415,671 for the quarter, a 75 percent increase over the 237,395 subscribers added in third quarter 2003.

"We are the satellite radio leader in subscribers, technology and content," said Hugh Panero, XM Satellite Radio President and CEO. "XM's subscriber momentum combined with our outstanding new programming and XM's unmatched technology, featuring the new Roady2, SKYFi2 and the groundbreaking MyFi, sets the table for an outstanding Holiday season and beyond."

Quarterly Revenue Accelerates

For third quarter 2004, XM reported quarterly revenue of $65.4 million, more than doubling the $26.9 million reported in the third quarter 2003. Revenue for the third quarter 2004 also represented a 23 percent increase compared to revenue of $53.0 million reported in the second quarter 2004.

Net Loss Narrows

XM's Net Loss for the third quarter 2004 was ($118.0) million as compared to ($133.5) million in the third quarter 2003. XM reported an EBITDA loss of ($62.9) million for the third quarter 2004, compared to ($64.4) million for the third quarter 2003, a period which included $4.4 million in de-leveraging charges. XM continues to focus on successful business execution as indicated by significant subscriber growth, declining Cost per Gross Addition (CPGA) and improved operating margins, while achieving strong growth during 2004 to date.

Continued Reduction in the Cost to Acquire Each New Subscriber

The third quarter 2004 CPGA was $89, an improvement of $38, or 30 percent, compared to the $127 CPGA reported in the third quarter 2003. XM's CPGA represents the fully-loaded cost to acquire each new subscriber, including Subscriber Acquisition Costs (SAC) of $57, as well as advertising and marketing expenses.

Improved Liquidity

The total liquidity position of XM as of September 30, 2004 was $583 million. XM had total cash and short-term investments of $448 million and capacity under the Revolving Credit and Equity Facilities from GM of $135 million.

[chopsueychris]

So it only cost XM 38 bucks to get me to join? Boy im a cheap fucking date!!!

[Smoke]

Meanwhile, XM said it is spending less to bring each new user aboard.

It certainly isn't advertising 202 at all!

What would help out XM (and every other station) would be if the recording industry cut its fees per song.

Also, every new subscriber is bring the company closer to profitability. Stern may not have a company to go to if Sirius fails, and it can be buried in the back yard like any other dead dog.

[ColumbusJoe]

Don't worry out there all you lil' fellas in wackbag land. XM has plenty of cash on hand to keep themselves running until they start to turn a guaranteed profit. It will still be 3 or 4 years before that happens, short term thinking. We can all see that they are the better company and are doing the things a company needs to do to stay a leader in a specific market.

[Skeet Slambone]

Don't worry out there all you lil' fellas in wackbag land. XM has plenty of cash on hand to keep themselves running until they start to turn a guaranteed profit. It will still be 3 or 4 years before that happens, short term thinking. We can all see that they are the better company and are doing the things a company needs to do to stay a leader in a specific market.
Creating a new industry is never easy.