Tuesday, December 05, 2006

Wall Street Journal: Can XM Profit In Slowing Market?

Can XM Profit in Slowing Market?
Controlling Costs Is a Key As Subscriber Growth Wanes
By STEPHEN GROCER December 6, 2006 The Wall Street Journal

Once a darling of Wall Street, XM Satellite Radio Holding Inc. has stumbled badly this year. The company lowered its subscriber forecasts three times, faced product delays and watched its market share shrink at the hands of its smaller rival, Sirius Satellite Radio Inc. Shares of Washington-based XM are down about 45% in 2006. Bullish analysts, though, point out that the sector offers huge growth opportunities, and XM is moving closer to profitability by strictly managing its costs. But the more bearish analysts are wary of stiff competition from Sirius, slowing subscriber momentum and a softening retail market for satellite radio...read more: here