The US satellite radio company XM saw its revenue for 2006 increase 67% year on year to $933 million.
The company also added 1.6 million new net subscribers in 2006 for a total of 7.6 million subscribers.
Hugh Panero, XM CEO, said: “2006 was a pivotal year for XM. The automobile market is emerging as a key catalyst for satellite radio’s future growth, and XM is well-positioned through its relationships with the nation’s largest and fastest-growing automakers. Our financial metrics are heading in the right direction as marketing costs have declined and our revenues have increased.”
For the fourth quarter of 2006, XM reported quarterly total revenue of $257.1 million, an increase of 45% over the $177.1 million total revenue reported in fourth quarter of 2005.
Advertising revenue grew 76% to $35.3 million from $20.1 million. These quarterly and annual increases in revenue were driven by subscriber growth and increases in average revenue per subscriber in connection with a price increase implemented in the second quarter of 2005.
It was announced last week that XM had agreed a merger with its main competitor, Sirius Radio, creating a company valued at $13 billion (see US Satellite Radio Companies To Merge).
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