[BC] and now, more trouble...

[Bill Sepmeier]

WASHINGTON - XM Satellite Radio Holdings Inc., the larger of two companies 
in the emerging satellite radio field, reported a smaller loss for its 
second quarter Thursday and a 55 percent increase in subscribers.

XM also raised its forecast for subscriber additions for the second half of 
2005, saying it now expects to end the year with 6 million subscribers 
versus its earlier target of 5.5 million.

XM's loss narrowed to $146.6 million, or 70 cents per share, from a loss of 
$166.1 million, or 84 cents, the year before. The company's deficit matched 
the average estimate from analysts polled by Thomson Financial.

Revenue totaled $125.5 million, more than twice revenue of $53 million a 
year earlier and topping the analysts' forecast of $122.3 million.

XM's quarterly subscription revenue jumped to $113.4 million from $48.6 
million a year ago. The company signed up 647,226 net subscribers — a 55 
percent increase over last year's additions — which more than doubled its 
total users to 4.4 million from 2.1 million a year ago.

The company spent $98 per gross subscriber addition, a 3 percent improvement 
from an average customer-acquisition costs of $101 in last year's second 
quarter.

XM shares rose 65 cents to $37.50 on the Nasdaq Stock Market during 
premarket activity.

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