XM Satellite Radio's Guidance for 2007

Monday, February 26, 2007 at 11:56 AM
Tags: 2, XM

XM Satellite RadioXM Satellite Radio has issued an SEC filing that contains their current guidance for 2007. So you go:

  • We will grow subscribers to between 9.0-9.2 million with higher seasonal growth in the latter part of the year.
  • Subscription revenue should be in the billion dollar range.
  • Adjusted negative EBITDA and CPGA will not improve on a year over year basis and will be flat to marginally higher due to merger related costs and effects, the need to continue stimulating the retail marketplace in light of the pending merger and the impact of OEM factory installed volume ramp-up before the subscribers come on as paying subs.
  • While we will see improved cash flow from operations in 2007, the timing and interrelationship of the factors we just described means full year positive cash flow from operations will likely move into 2008.
  • By the time of our next earnings call, we should have a better understanding of merger related costs and expect to come back with refined adjusted EBITDA guidance.

During the Q&A part of the earnings call, it was asked about the long-term guidance and whether the estimate for subscribers in "the high-teens" still stands. The "high-teens" number was confirmed, but no further long-term guidance was offered.

Considering that XM added 1.7M net subscribers in 2006, and expects to add 1.4-1.6M subscribers in 2007, you can understand why they're sticking to the "high-teens" estimate for 2010.

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Comments

NOPE

9 to 9.2 million subs. You can't be happy with that number Ryan.

Once they get Howard on their service they should do much better :)

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