XM Satellite radio, whose merger with rival Sirius is still in limbo, posted decent Q4 results. XM reported $308 million of Q4 sales, up 20% year-over-year and in line with the Street’s $303 million consensus. Q4 EPS dropped to a 78 cents per share loss, from a 90 cents per share loss a year ago — but earnings are irrelevant at this point.
More important: overall subscriber growth accelerated a bit y/y to 460,000 Q4 net additions, and customer retention was strong at a 1.7% monthly churn rate. Less encouraging: cost per gross subscriber addition jumped 9% y/y to $140.
Like Sirius (SIRI), XM (XMSR) desperately needs the merger to get approved by the U.S. government — but even then, the satellite radio business faces a lot of challenges.
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