# XM Aims for 1 Million Subs



## Steve Mehs (Mar 21, 2002)

XM Satellite Radio isn't backing away from its bullish subscriber projections for 2003.

XM CEO Hugh Panero said Thursday the company still expects to reach 1.2 million subscribers at the end of 2003. Given the tough economic conditions and other factors, reaching that number "is a challenge, but achievable," he said.

The forecast came along with 2002 financial results and news that XM expects to report more than 130,000 customers during the current quarter. In January, XM announced that it crossed the 360,000 customer mark.

Subscriber numbers are expected to accelerate in 2003 due to the availability of XM radios in additional lines of GM and Honda vehicles and growing sales tied to XM's SKYFi product. Sales are expected to jump "steeply" in fourth quarter 2003 due to the roll-out of 2004 vehicle models with XM and high hopes for the holiday shopping season, Panero said.

Panero said that during fourth quarter 2002, XM added 79,000 customers.

On the financial side, Panero said XM is expected to go cash flow break-even late in 2004. Fourth quarter 2002 realized revenue was $9 million, and XM's EBITDA loss was $97.3 million. The consolidated net loss for the three-month period was $161 million.

From SkyReport (Used with Permission)


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