Spurred by successful launch of its Major League Baseball coverag...
Spurred by successful launch of its Major League Baseball coverage, XM expects 2nd quarter subscriber additions to equal or surpass the 541,140 added in the first quarter, the company told analysts Wed. in its quarterly conference call. XM narrowed…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
its net loss in the quarter to $119.32 million (-58 cents per share) from $144.51 million (-96 cents) on a 139% revenue increase to $102.57 million. The company ended the quarter with 3,770,264 subscribers, a 124% increase from a year earlier. XM said again it’s on pace to reach its goal of 5.5 million subscribers this year. CEO Hugh Panero pledged XM will achieve its target “in a very cost- effective way.” Panero said XM’s customer base “has reacted well” to its March announcement of a rise in the basic monthly subscription fee to $12.95 from $9.99. He said the key to implementing the rate change was giving customers a “unique” opportunity to lock in the lower rate by signing on for annual or multiyear subscriptions. “I worked in the cable industry for a very long time and know a lot about the DBS business, and I cannot believe that this kind of offer has never been done in either of those industries,” said Panero, a former HBO executive. XM’s quarterly churn was 1.4% -- “only slightly higher” than the 1.3% in the 4th quarter, Panero said.