XM Satellite Radio reported a larger per-share loss than anticipated when it reported Q4'06 earnings but shares climbed more than 1.5% in pre-market trading nonetheless. The company posted a 45% gain in revenue to $257.1 million from $177.1 million in the year earlier period surpassing the average Street estimate of between $242.8 million (Thomson) and $248.6 million (Bloomberg). EPS came in at a loss of $0.90 (-$256.7 million) versus an EPS loss of $1.22 ($268.3 million) a year earlier. It added 442,679 net new subscribers versus a net gain of 898,315 in the prior year period while the churn rate rose to 1.79% compared with 1.57%. For the year, the company added 1.7 million new subscribers in 2006, ending the year with 7.6 million subscribers after projecting it would close the year with 7.7-7.9 million subscribers. Gross cost per new customer was $128 compared with $141 a year earlier.
• Sources: Press Release, Wall Street Journal, Bloomberg, AP, [Check back for XMSR's conference call transcript later today]
• Commentary: XM/Sirius Merger: Defending Mel Karmazin • XM/Sirius Merger: An Attempt to Salvage Satellite Radio? • Sirius and XM Satellite to Merge - If They Can Clear Regulatory Hurdles
• Stocks and ETFs to watch: XM Satellite Radio Holdings Inc. (XMSR). Competitors: Sirius Satellite Radio (SIRI), Clear Channel Communications (CCU)
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