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10/27/2005
XM Satellite Radio Holdings Inc. Announces Third Quarter 2005 Results and Reaffirms 6 Million Subscriber GuidanceXM Satellite Radio |
XM Satellite Radio Holdings Inc. today reported financial and operating results for the third quarter ended September 30, 2005. XM ended the quarter with 5,034,642 subscribers, doubling the 2,516,023 subscribers reported last year for the third quarter. The growth was driven by third quarter net subscriber additions of 617,152, a 48 percent increase over the 415,671 net subscribers added in the third quarter 2004. Given its strong performance in the first three quarters, XM reaffirms its guidance of exceeding 6 million subscribers by the end of 2005.
XM's net loss for the third quarter 2005 was ($131.9) million, as compared to ($118.0) million in the third quarter 2004. XM reported an EBITDA loss of ($73.8) million for the third quarter 2005 compared to a third quarter 2004 loss of ($62.9) million.
Record Revenue from Cost-Effective Subscriber Growth
For the quarter, XM reported revenue of $153 million, an increase of 134 percent over the $65 million reported in the third quarter 2004. XM's third quarter subscriber growth was driven by strong automotive and retail distribution performance with a range of full-featured products. Subscriber Acquisition Costs (SAC) in the third quarter 2005 were $53, a decrease from the $57 in the third quarter 2004. Cost Per Gross Addition (CPGA) in the third quarters of both 2005 and 2004 was $89. XM products are well stocked for the holiday season and XM expects to accelerate its subscriber and revenue growth through the fourth quarter.
GM and Honda to produce more than 2 million 2006 XM-equipped vehicles
In September, General Motors announced the production of its 3 millionth vehicle with a factory-installed XM radio. General Motors also announced it plans to manufacture 1.55 million vehicles factory-installed with XM in the 2006 calendar year. In addition, Honda announced its plans to produce 550,000 XM equipped vehicles in the 2006 model year, compared to a 2005 target of 400,000. XM's OEM partners represent 61 percent of the U.S. auto market, with automotive partners Toyota and Hyundai gearing up for XM factory installation beginning in the 2007 model year.
XM Expands Sports, Talk and Women's Programming
XM is the satellite radio leader in live sports content and will broadcast over 5,000 live sporting events each year. XM is capping off its inaugural season of exclusive Major League Baseball coverage with the biggest promotion in World Series history, offering every ticket holder to Game One a voucher to receive a free Delphi XM RoadyXT radio with a subscription commitment. In addition to MLB, XM is now broadcasting National Hockey League games as a part of a 10-year agreement. XM will become the exclusive satellite radio network of the NHL beginning with the 2007-2008 season. XM also carried the USTA US Open Tournament and PGA TOUR Golf, and it introduced a new Spanish-language sports channel XM Deportivo, which will offer 2006 World Cup Soccer. Earlier this month, XM also launched Take Five, a channel dedicated to women, featuring Ellen DeGeneres, Tyra Banks, the Satellite Sisters and content from the Food Network and HGTV. XM recently announced that the FOX News Talk channel will be available in January, featuring FOX News personalities Bill O'Reilly, Tony Snow, and others.
XM Broadens Exposure with Strategic Partnerships
XM continues to broaden its exposure by offering its content on AOL and soon DIRECTV (available in mid-November) and announcing XM+Napster, an online music download service, which will allow customers to purchase music heard on XM. All these strategic relationships complement XM's marketing partnerships with Starbucks Coffee, JetBlue, AirTran Airways, Hyatt Hotels, Avis, National and Alamo, which together help build XM brand awareness and trial.
XM Canada Receives Final Regulatory Approval
In September, the Canadian Federal Cabinet gave final regulatory approval to XM's Canadian partner. XM Canada plans to offer a broad range of music, sports, news, and talk radio channels in time for the holiday season.
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