XM Satellite Boosts Subscriber Forecast

The company also reports second-quarter revenue that beats estimates.
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XM Satellite Radio

(XMSR)

raised its year-end subscriber guidance by 500,000 and said second-quarter revenue more than doubled from the same period in 2004.

The company now expects to end the year with 6 million subscribers, up from its prior forecast of 5.5 million.

For the second quarter ended June 30, XM reported revenue of $125 million. A year ago, the company posted a top line of $53 million. Second-quarter net subscriber additions totaled 647,226, a 55% increase from the year-ago period. XM ended the quarter with 4.4 million subscribers.

XM's loss for the quarter was $146.6 million, or 70 cents a share, compared with $166.1 million, or 84 cents a share, in last year's second quarter.

On average, analysts surveyed by Thomson First Call expected a loss of 70 cents and revenue of $122.2 million.

Shares of XM were gaining 32 cents to $37.17 in premarket trading. Competitor

Sirius Satellite Radio

(SIRI) - Get Report

was adding 3 cents to $7.