XM Cuts Loss Third Quarter Loss
November 7, 2006

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XM Satellite Radio Holdings Inc. cuts its third quarter loss as revenues improved 57 percent, the company announced Nov. 6. XM lost $84 million in the 2006 third quarter, which closed Sept. 30, down from a loss of $132 million in the same period a year ago.

Revenues jumped from $153 million in the 2005 third quarter to $240 million due to subscriber growth and an increase in average revenue per subscriber. XM added 286,000 net new subscribers during the third quarter to close with 7.2 million subscribers, up 43 percent from a year ago. XM expects to close 2006 with 7.7 million to 7.9 million subscribers.

Subscriber acquisition cost was $60 in the most recent quarter, compared to $53 in the third quarter of 2005. Cost per gross addition, which includes subscriber acquisition cost, was $93 in the 2006 third quarter, up from $89 in the same period a year ago.

"With significant growth in revenue and narrowing losses we are on track for positive cash flow from operations in the fourth quarter of this year," Hugh Panero, XM's CEO, said in a statement.

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