XM Announces Q2 Losses; Adds ABC, ESPN, And Disney Programming

By | July 19, 2001 at 12:00 AM

XM Satellite Radio Holdings Inc. yesterday reported financial and operating results for the second quarter ending June 30, 2001. During the quarter, XM Radio achieved several critical milestones including successfully launching its second satellite, “Roll,” signing programming deals with leading brand names including MTV, VH1, CNBC, and CNET, and launching a redesigned website in preparation for commercial launch planned for late this summer.

With all that activity, and not a single paying subscriber, it stands to reason that the company suffered losses in consolidated operating loss (EBIT), consolidated net losses, and consolidated net loss available to common shareholders. For the quarter, operating losses reached $42.1 million, while consolidated net losses grew to $38.5 million, and consolidated net losses available to common shareholders reached $44.3 million (or $0.76 per share). While these numbers nearly mirror those for the first quarter of 2001, the comparison to the second quarter of last year is more dramatic. In Q2 2000, XM had a consolidated operating loss of $13.9 million, a consolidated net loss of $5.1 million, and a consolidated net loss available to common shareholders of $7.3 million, (or $0.15 per share).

In addition to reporting Q2 results, the company today announced the addition of programming from ABC Radio Networks’ flagship brands, ESPN Radio, Radio Disney, and ABC News and Talk. In printed statement released today, Traug Keller, president of ABC Radio Networks, said that those properties will be available to subscribers of XM Satellite Radio when the service is launched later this summer.

“We are very excited to bring ESPN Radio, Radio Disney, and ABC News and Talk to XM,” said XM President and CEO Hugh Panero. “These great brands and compelling content will bolster our already stellar programming lineup.”

ABC Radio Networks has more than 4600 affiliate radio stations reaching 123 million persons age 12-plus each week. XM plans to offer up to 100 channels of digital-quality sound and provide coast-to-coast coverage of music, news, sports, talk, comedy, and children’s programming.

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