XM Radio Widens Loss; Losing Subscribers Jul 27 8:55 AM US/Eastern http://www.breitbart.com/news/2006/07/27/D8J4BG600.html
NEW YORK XM Satellite Radio Holdings Inc. reported a wider loss for its second quarter Thursday as it absorbed charges for restructuring its debt. The company again lowered its estimates for full-year subscriber counts. XM, which is based in Washington, D.C., lost $231.7 million or 87 cents per share in the three months ending June 30, versus a loss of $148.8 million or 70 cents per share in the comparable period a year ago. Revenue nearly doubled to $227.9 million from $125.4 million a year ago. The company said it now expects to end the year with a customer base between 7.7 million and 8.2 million, and that it would refine that range at the end of the third quarter. The company cited "current marketplace dynamics" and regulatory uncertainty regarding certain of its radio models for the change. The news is sure to disappoint investors, who punished XM's stock in May when it lowered its previous forecast for year-end subscribers to 8.5 million from 9 million, blaming problems with product availability and soft retail sales. In pre-market trading, XM's shares fell 50 cents or 4.8 percent to $9.86. On Monday, the company named one of its board members, Nate Davis, to the newly created position of president and chief operating officer, where he will share oversight of the company's operations with CEO Hugh Panero. Davis, a former senior executive at XO Communications, Nextel and MCI, will remain on XM's board, where he has served as a director since 1999. The latest figures include $82.3 million in losses from restructuring its debt and other non-operating losses, the company said. Excluding non-operating items in both periods, XM's quarterly loss narrowed to $45.9 million from $88.4 million. Its gross cost per subscriber addition increased to $112 in the quarter, up from $98 in the same period a year ago. The company added 398,012 net subscribers in the period, ending the second quarter with 6.9 million subscribers, an increase of 56 percent over the year-ago period. ___ On the Net: http://www.xmradio.com Gregory S. Williams [EMAIL PROTECTED] Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
