Canadian Satellite Radio Holdings Inc. (CSR), which offers satellite radio service under the XM Canada brand, lost Cdn. $14.6 million ($12.6 million) in its first quarter due to expenses incurred in preparation for launch of service, the company announced Jan. 16.

CSR, which launched service Nov. 22, reported revenue of $46,010 during the nine days of operation in the quarter, which ended Nov. 30. Revenue was generated from activations, subscriptions and sales of radios from the direct fulfillment channel, CSR said.

In December, CSR raised Cdn. $55 million ($47.4 million) in an initial public offering (IPO) of stock and in January, the company projected it would reach 75,000 subscribers by the end of August, the close of the company’s 2006 financial year, and 1 million subscribers by August 2010.

“We are very happy with the launch and roll out of the XM Canada service and are pleased that our subscription sales are running ahead of management expectations,” John Bitove, CEO of CSR and XM Canada, said in a statement. “CSR’s IPO marked a milestone in our development and helped put us on a solid financial footing. Funds from the IPO have driven the build out of our repeater network and furthered construction of our broadcast studios in Montreal and Toronto.”