XM Satellite Radio Holdings Inc. plans to have 350,000 subscribers by the end
of this year, CEO Hugh Panero said Thursday.
The company expects 60,000 of those subscribers to come in the fourth
quarter, once car manufacturers begin offering XM as an option on new cars.
XM investor General Motors Corp. has already announced that it will include
XM as an option in 23 of its 2003 car and truck lines.
Panero expects other car manufacturers to add XM as an option to their 2003
models by the third quarter of this year, although he did not announce any new
carmakers. One possibility is American Honda Motor Co. Inc., which is an
investor in the company.
So far, XM has signed up more than 30,000 subscribers, at an acquisition cost
of $130 each, Panero said. That pace outstrips the expectations of Wall Street
XM also announced its financial results for the year and for the fourth
The company reported fourth-quarter revenue of $533,000, while its earnings
before interest, taxes, depreciation and amortization (EBITDA, or operating cash
flow) came in at negative $238.9 million.
That number includes a one-time cost of $26.3 million for terrestrial
repeater sites that are no longer needed.