XM Satellite Radio Holdings, the larger of the US’s two satellite radio broadcasters, posted a wider loss in the third quarter due to higher programming and marketing costs even as revenue rose and subscribers more than doubled from a year ago.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more


The Associated Press (AP) said the company had a net loss of US$134m, or 60 cents per share, compared with $120.1m, or 59 cents per share, the year before. Analysts surveyed by Thomson Financial expected a loss of 66 cents per share.


One piece of news troubling investors was another decline in the “conversion” rate at XM’s key promotional programme with General Motors, or the portion of customers who elect to sign up after an initial trial period. That rate fell to 56% in the quarter, from 58% in the previous quarter and 60% a year ago, AP noted.


Sanford C Bernstein analyst Craig Moffett reportedly called the continued decline in the conversion rate a “disappointment” in a note to investors, and said it boded poorly for prospects for other pre-install programmes for XM radios at other car makers since GM is the first and largest car company to carry the radios.


“The rate of decline is somewhat steeper than we expected or would have liked to see,” Moffett wrote, according to AP.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Associated Press added that investors may also have been concerned about an announcement on Wednesday (26 October) from GM, which said it plans to build 1.55m vehicles next year with factory-installed XM radios, up only 11% from 1.4m in 2005. This year’s figure represents growth of about 20% from the 1.17m installed in GM cars in 2004.