# How Big Was 2Q for XM?



## Chris Blount (Jun 22, 2001)

Given that the company has already reported it crossed the 2 million subscriber mark, Wall Street is expecting big things for XM Satellite Radio's second quarter.

David Kestenbaum of IRG Research raised his second quarter net subscriber addition estimate for XM from 342,000 to 400,000. On a straight-line basis, "XM is on track to add 391,000 subscribers during the quarter. However, we think a strong Father's Day should help the company meet our 400,000 estimate," the analyst said.

Kestenbaum also increased his third quarter net subscriber estimate for XM to 428,000 from 408,000. He said the company is on track to end the year with 3.08 million subscribers.

Alden Mahabir of Vintage Research also suggested XM could report strong net additions for the quarter based on the 2 million customer milestone the company announced July 14. Mahabir's original second quarter estimate was 347,000 net additions for XM, yet in a research note released Wednesday the analyst raised that number to 365,000.

XM could report final subscriber numbers for the quarter today, analysts said.

In addition, Mahabir said stronger customer growth shouldn't take too much off the company's bottom line. For second quarter, Vintage expects revenue of $54 million and an EPS loss of 88 cents. The EPS loss estimate includes a one-time $35 million charge related to the early retirement of debt. The consensus EPS loss estimate is 84 cents.

Wall Street also is looking for new product news from XM. J.P. Morgan reported Tuesday that it thinks the company could have a "wearable" satellite radio in stores by Christmas.

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


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## Steve Mehs (Mar 21, 2002)

Personally I know three people who have subscribed to XM in the final weeks of Q2 of this year and another one who will soon be getting XM once she can make up her mind between the Roady or SkyFi.


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