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XM Satellite Radio Loss Widens

Still, the stock was higher by 30 cents, or 2.5%, at $12.10 in early trading.

XM Satellite Radio


traded higher Monday despite reporting first-quarter results that came up shy of Wall Street's expectations.

The Washington, D.C.-based satellite-radio operator reported a loss of $129.3 million, or 42 cents a share, in the first quarter, widening from a year-ago loss of $122.4 million, or 40 cents a share. Total revenue rose to $308 million, up 17% from the same quarter a year earlier.

Analysts were expecting a loss of 39 cents a share on revenue of $313 million, according to Thomson Reuters. Still, the stock was higher by 30 cents, or 2.5%, at $12.10 in early trading.

As both XM and its merger partner

Sirius Satellite Radio

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(SIRI) - Get Sirius XM Holdings, Inc. Report

have done in the past, XM didn't provide 2008 guidance in its earnings report.

XM said it ended the quarter with 9.33 million subscribers, an 18% rise from a year ago. The company said the result was driven by a 49% year-over-year increase in the number of gross additions through its automotive, or OEM, channel. OEM gross additions in the first quarter totaled 802,000, compared to 537,000 in the year-ago quarter.

"In first quarter 2008 we delivered the largest number of new customers from the automotive channel in XM's history, marking the fourth consecutive quarter of record OEM gross additions," said President and CEO Nate Davis, in a prepared statement.

Among key metrics watched closely by analysts, average revenue per subscriber fell to $10.04 from $10.15 in the year-ago quarter. At the same time, subscriber acquisition costs swelled to $73 from $65 last year.

On the positive side, monthly churn, which measures the number of subscribers who quit the service, dipped to 1.77% from 1.78% in the first quarter of 2007. Additionally, XM said its conversion rate increased to 53.3% from 51.5% in the year-ago period.

Sirius is set to report quarterly results after Monday's closing bell.