Expansive sub count pumps XM stock

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.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Marketplace

    Leave a Reply

    No Comments

    Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

    Fill in your details below or click an icon to log in:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s

    More Digital News from Variety

    Loading