As news of the two major satellite radio firms’ intent to merge sinks in throughout the industry, XM Satellite Radio announced Monday that its revenues rose and its losses fell during the fourth quarter of 2006.
XM and Sirius Satellite Radio announced their desire to merge last week, though the deal requires approval from U.S. regulatory authorities.
XM said it plans to maintain a strong presence in Washington, where it is now based, but the companies haven’tannounced where the headquarters of the new company would be.
“We are running XM as if there is no merger,” XM CEO Hugh Panero said during a phone call with investors Monday. During the fourth quarter of 2006, XM’s revenues were $257.1 million, up from $177.1 million during the fourth quarter of 2005.
XM reported revenues totaling $933.4 million for 2006, up from $558.3 million during 2005. The company’s net loss was $256.7 million for the quarter, and $718.9 million for the year. In 2005, XM lost $268.3 million during the fourth quarter and $666.7 million during the year. XM captured fewer subscribers than it had projected for 2006.
It added 1.7 million net subscribers during the year, with 442,679 coming in during the fourth quarter. Its total subscribers numbered 7.6 million by the end of 2006.
“We would have loved to have gotten more subscribers,” XM President Nate Davis said. Davis, who said XM was more conservative about marketing costs this year than it has been previously, said that during 2007, the company’s subscriber growth will come more from new car sales than from retail channels.
Sirius will hold its financial results call today, but the company already revealed in January that it had brought in a higher number of net subscribers than industry-leader XM during the fourth quarter of 2006.
