This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

XM Growth Slows Again

XM (XMSR) shares dip as the satellite radio shop sees another slowdown in subscriber growth.

The Washington, D.C., pay radio broadcaster managed to hold third quarter losses to $145 million, or 47 cents a share, roughly flat with the second quarter performance, but down from the year-ago loss of $85 million, or 32 cents a share. Sales were $287 million, up from $277 million in the prior quarter.

Analysts were looking for an adjusted net loss of 44 cents on revenue of $287 million, according to Yahoo Finance.

XM added 310,000 net new subscribers in the third quarter for a total of 8.5 million users. The pace of user growth, however, continued to slow. In the second quarter, for example, XM added 338,000 subscribers. Last year, XM added 286,000 net new subscribers in the third quarter.

It is these runaway costs and steadily slowing user growth that forced XM and sole rival Sirius (SIRI) to propose a merger earlier this year.

Though regulators are still reviewing the combination, key areas like the average cost to win a customer have been stubbornly high. The so-called subscriber acquisition cost for XM in the third quarter was $70, up from $59 in the year-ago period.

XM did have some solid improvements in other areas, though. The monthly customer defection rate fell to 1.67% from churn of 1.82%. And the average revenue per user remained steady at about $10.17, up 2 cents from last year.

XM shares fell 9 cents to $15.50 and Sirius was unchanged at $3.63 in early trading Thursday.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,802.16 -12.78 -0.07%
S&P 500 2,067.52 +0.49 0.02%
NASDAQ 4,769.0690 +10.8170 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs