XM And Sirius Continue to Loose $ As They Grow

Information Week reports that while subscriptions to both Sirius and XM Satellite Radio continue to grow, each  is still operating at a loss.  XM reported a loss of $304 million on revenue of $161 million through the first three quarters of 2004, after reporting a loss of $319 million on revenue of $92 million in 2003. Sirius reported a loss of $450 million on revenue of $41.6 million through the first three quarters of 2004, after reporting a loss of $226 million on revenue of $12.9 million in 2003.

While the operating losses are substantial, both companies are still spending big money on new content, which they hope will offset losses. XM is looking to break even in 2006. "We don’t directly tie subscribers to a profitability timetable," said XM Manager of Corporate Affairs David Butler. "We do believe we can be looking at break even in 2006."

Sirius VP of Corporate Communications Jim Collins points to both services still being in an early growth mode and says losses will turn around in time. "We have enough assets to get to the finish line," he told Information Week.