XM Satellite Radio reported a Q1 loss of 129.3 million, or 42 cents a share, widening from a year-ago loss of 122.4 million, or 40 cents a share. Total revenue rose to 308 million, up 17% from the same quarter a year earlier.
Analysts were expecting a loss of 39 cents a share on revenue of 313 million, according to Thomson Reuters.
Ironically, XM ended the quarter with 9.33 million subscribers, an 18% higher than a year ago. The company said the result was driven by a 49% YOY increase in the number of gross additions from OEM car radios. OEM gross additions in Q1 totaled 802,000, compared to 537,000 in the year-ago quarter.
Average revenue per subscriber fell to 10.04 from 10.15 in the year-ago quarter. However, subscriber acquisition costs increased to 73 dollars from 65 last year.
Q1 churn was 1.77%, compared to Q1 2007 churn of 1.78%.
"In first quarter 2008 we delivered the largest number of new customers from the automotive channel in XM’s history, marking the fourth consecutive quarter of record OEM gross additions," XM CEO Nate Davis. "XM’s ongoing investment in the OEM channel is paying dividends in the form of record customer additions and continued revenue growth as our OEM partners further expand XM’s reach to millions of consumers."
XM said its pending merger with Sirius, approved by DOJ in late March, is still subject to FCC approval.