XM Subs Grow, Net Loss Increases for 1Q04

XM Satellite Radio Holdings Inc. [XMSR] today reported a net loss of $170.1 million for the first quarter of 2004, compared with a net loss of $126.3 million during the same period one year ago. Officials attributed the change to the growth in the subscriber base and a one-time, non-cash charge of $25.6 million to account for deferred income taxes associated with intangible assets.

But while the net loss grew, XM reported an increase in revenues to $43 million for first-quarter 2004, up nearly 230 percent from $13.1 million in revenues during first- quarter 2003. Officials noted that for the just ended first quarter, it was the first time revenues exceeded fixed expenses.

XM added 321,675 net subscribers in the first quarter of this year, bringing the total subscribers to 1,681,903 as of March 31.