640,000 new listeners added
Shares in XM got a boost Friday as the satcaster revealed better-than-expected subscriber figures for the quarter ended June 30.
Keeping up a tradition of revealing sub adds as soon as the quarter ends and before earnings, XM announced it signed up 640,000 new net listeners in the second quarter, bringing its sub count to more than 4.4 million.
Figure marks the biggest second quarter in company’s history and a 53% jump over sub adds a year ago.
The consensus among analysts had been that XM would add 560,000 subs.
Growth was particularly impressive as it came shortly after XM implemented its first price increase. Monthly cost in April rose from $9.95 per month to $12.95, in line with competitor Sirius.
Still to be revealed is how the subscriber adds translated on the bottom line. By cutting sub acquisition costs in the first quarter, XM was able to make the first substantial dent in its continuing large losses.
Sirius hasn’t yet revealed its sub adds for the quarter. It had just under 1.5 million subscribers as of March 31.
Shares in XM rose 3% on the news, closing Friday at $34.82.