XM Satellite Radio Releases Third Quarter 2006 Results

Monday, November 6, 2006 at 8:51 AM
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XMXM Satellite Radio has released their 3Q06 results.

Here's the highlights:

  • End of year subscriber guidance has been updated to be between 7.7 million and 7.9 million
  • Revenue was roughly $240 million - up 57% from $153 million in 3Q05
  • Net loss for 3Q06 was $84 million - compared to $132 million in 3Q05 - a 36% improvement
  • SAC was $60 compared to $53 in 3Q05
  • CPGA was $93 compared to $89 in 3Q05
  • Gross subscriber adds were at 868,007 with net subscribers being 286,002
  • XM finished the third quarter with a total of 7,185,873 subscribers - 43% higher than the same period a year ago
  • Oh, and net loss was $83.8 million, or 32 cents a share, down from a loss of $131.9 million, or 60 cents a share, a year earlier (far smaller than the 43 cents per share expected by analysts)
That's quite a wide spread between gross subscribers and net subscribers. XM's conference call is set for 10am ET today - I will be Live Blogging the event, so if you're not able to tune in check back here for the details during the call.

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Comments

I'll say it first:
This quarter sucked.

But wait, look at today's stock news....
What's this? XM up 1.78 (15.63%)to 13.17. Good news the end of this quarter... look in detail at this article if you please.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTPMzjgUXFPA&refer=home


So, in short, this quarter didn't suck as bad as the last 4-5.

this news is very very good. the gap of losing money has decreased by 50 million. thats awesome. finally some light has shined on this industry. i hope sirius is as good. lets hope people love their satellites enough to hold on and keep spreading the word on how good this product is. the key is net gains, remember that

582,005 former XM subscribers unsubscribed this quarter. More than half a million! That's record breaking news. I wonder why? Wasn't Oprah going to bring a lot of subscribers? Maybe it's NASCAR leaving XM or maybe it's O&A being on Free FM. Why would you want to pay for a show you can get for free? XM have done a lot of bonehead decisions, Oprah being their worst decision ever. 55 million dollars for 3 years and Oprah works 30 minutes a week. What a rip-off.

". the key is net gains, remember that"

Is it? The key now is reducing loses and increasing revenue. Something XM is starting to do. Im shocked at these numbers, pleasantly shocked and surprised. Great job XMSR.

if you have large net gains, you've cut your losses and increased revenue. therefore the most important thing is to maintain net gains.

Who knew that year over year costs are up, XM only gained 12mil in revenue and churned 300% more subscriber then they added (net) and they narrow debt by 50 million.

I can't figure out the numbers, it doesn't add up.

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