As it waits (and waits) for permission to merge with Sirius, XM Satellite Radio reports that it ended Q2 with 9,653,000 subscribers, an increase of 17% from a year ago. XM also said its churn improved in the quarter. Subscription revenue for Q2 is expected to be $283-288 million. The operating loss is expected to be in a range of $32-38 million. XM also announced that it is offering $400 million of new senior notes, which will refinance certain debt in connection with the planned merger.
RBR/TVBR observation: Way back when, both satellite radio companies said the break even point for operations would be about four million subscribers – then they would move into positive operating cash flow. Well, 10 million subs is in sight for XM, but positive cash flow? Well, that’s another matter.