XM Canada loss grows, subscribers jump 58 pct

Thu Jul 10, 2008 1:08pm EDT
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TORONTO (Reuters) - XM Canada XSR.TO, the Canadian licensee of XM Satellite Radio Inc XMSR.O, posted a wider third-quarter loss on Thursday, but said its subscriber base jumped 58 percent and it achieved positive cash flow for the first time.

The satellite radio company said it lost C$18.8 million ($18.6 million), or 39 Canadian cents a share, in the three months ended May 31. That was worse than the loss of C$13.3 million, or 28 Canadian cents a share, in the same period a year earlier.

The company said total revenue rose to C$10.3 million from C$5.7 million a year earlier and that its subscriber base rose to 439,000 in the quarter.

It also said it booked C$300,000 of positive cashflow, adding: "this milestone was attained in only two and a half years."

XM Canada said its average monthly subscription revenue per user rose to C$11.99 from C$11.70 a year earlier.

"Much of this growth is attributable to an increasing proportion of our subscribers transitioning from our previous basic monthly subscription price of $12.99 to the current price of $14.99," the company said.

XM Canada's shares haven't traded since Tuesday, when they changed hands at C$3.80.

($1=$1.01 Canadian)

(Reporting by Wojtek Dabrowski; editing by Rob Wilson)