XM Canada Reports
April 16, 2006
1:23 p.m. 04/16/2007
TORONTO, Apr 16, 2007 (Canada NewsWire via COMTEX) -- <<>>
Canadian Satellite Radio Holdings Inc. ("CSR"), today reported its financial results for the second quarter ended February 28, 2007 based on the achievement of 237,500 subscribers.
"We are pleased with our performance this quarter and are confirming our position as Canada's premium digital audio entertainment and information company," said John Bitove, Chairman and CEO of Canadian Satellite Radio Holdings Inc.
"We will continue to build our subscriber base through innovative partnerships such as our new agreement with Rogers Communications, which is another landmark deal for XM Canada and another first for the industry," said Bitove. "Through an aggressive team effort, we are on track to reach one million subscribers by 2010."
For the three-month period ended February 28, 2007, XM Canada reported revenue of $4.9 million, an increase of 27 per cent over the previous quarter and a 325 per cent increase over the second quarter of 2006. This increase in revenue is due to an overall increase in subscriptions, activation fees, sale of merchandise through our direct fulfillment channel, advertising revenue on Canadian-produced channels and other revenue from partnership subscribers.
Adjusted operating loss(1) for the three-month period was $15.8 million, an improvement of $1.6 million over the second quarter of 2006. Adjusted operating loss is expected to improve as we continue to grow our subscriber base and manage operating expenses.
For the second quarter, Average Revenue Per Unit (ARPU) was $10.90, a decrease of $1.11 from the second quarter of 2006. We incurred Subscriber Acquisition Costs (SAC) of $53 per gross addition, a decrease of $16 from our second quarter of 2006. Cost Per Gross Addition (CPGA) was $207, an increase of $13 over our second quarter of 2006.
ARPU and SAC decreased from the second quarter of 2006 due to our fiscal 2007 holiday promotion, which included service credits and hardware rebates that have been amortized over the term of the subscriber payment plan and were accounted for against revenue, as well as the introduction of multi-year plans during the summer of 2006. SAC was improved by an increase in the subscriber additions through our automotive partnerships. CPGA increased as a result of our first full holiday season marketing campaign.
4/16/2007 02:14:00 PM
SSG Has Merged. You Can Read All Of The Latest SSG Content By Clicking Here
Could someone please explain why this news is being so poorly received by the stock? It took a dive on big volume when this news was released.
By April 16, 2007 2:27 PM
I would like to know the same thing. The market was up big today and this is the reaction to good subscriber numbers?
By April 16, 2007 6:39 PM
SSG is not a Financial Advisor. Read Disclosure: HERE