XM Satellite Radio Shares Plunge
Fri Aug 8, 8:12 AM ET
WASHINGTON - The stock of XM Satellite Radio Holdings Inc. fell sharply Thursday after the satellite-radio broadcaster posted a wider second-quarter loss, citing asset depreciation.
The Washington-based company lost $161.9 million, or $1.38 a share, for the quarter, compared with a loss of $117.2 million, or $1.38 a share, a year ago.
Though the quarterly loss per share was unchanged from a year ago, the figure is wider than the $1.25-a-share loss predicted by analysts surveyed by Thomson First Call.
Revenue rose to $18.3 million from $3.8 million.
Shares of XM Satellite fell $2.75, or 21 percent, to close at $10.52 on the Nasdaq Stock Market.
XM Satellite said its loss before interest, taxes, depreciation and amortization for the quarter widened to $95.8 million, compared with a loss of $78.7 million a year earlier.
The second-quarter loss was expected due to a rapidly ramping growth business, XM Satellite said. The company said it expects to reach break-even cash flow in late 2004.
The service added 209,178 subscribers during the quarter, for a total of 692,253. Subscribers pay $9.99 a month for access to 100 radio channels.
Separately Thursday, General Motors Corp. said it had built 500,000 cars equipped with XM Satellite receivers.
A competitor to XM Satellite, Sirius Satellite Radio, Wednesday said it ended the last quarter with 105,000 subscribers, short of the predictions of some analysts. Its shares ended down 18 cents, or 10 percent, at $1.53 on the Nasdaq.