# XM Grows 1Q Revenue



## Chris Blount (Jun 22, 2001)

During the first quarter, XM Satellite Radio grew its revenues as well as reducing costs associated with acquiring subscribers.

XM reported first quarter revenue of $43 million, up from $13.1 million reported in first quarter 2003 and 30 percent from fourth quarter 2003 revenue of $33.5 million. Fixed expenses were $37.1 million for the three-month period, which XM said marks the first time quarterly revenues exceeded fixed expenses.

XM also said it's reducing its costs to acquire subscribers. First quarter Cost Per Gross Addition (CPGA) was $106, an improvement of $50 from the $156 CPGA reported in first quarter 2003, the company said. XM said its CPGA is the fully-loaded cost to acquire each new subscriber, including subscriber acquisition costs (SAC) of $67, as well as advertising and marketing expenses.

XM recorded an EBITDA loss of $78 million for the three-month period ending in March, compared to $63.3 million for first quarter 2003. XM's net loss for the first quarter was $170.1 million, compared to a $126.3 million net loss in first quarter 2003. In April, XM reported that it had 1.681 million subscribers at the end of the first quarter. During the quarter, XM netted 321,675 customers, more than double net subscriber additions of 135,916 subscribers in first quarter 2003.

http://www.skyreport.com (Used with permission)


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