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Earnings: XM Satellite Narrows Losses In Q2; Revs Gain 21.5 Percent

As the company continues to wait for federal approval of its pending merger with rival Sirius Satellite Radio, XM Satellite Radio (Nasdaq: XMSR) narrowed its net loss to $176 million, a 23 percent improvement over last year’s net loss of $229 million. Revenues, meanwhile, increased 21.5 percent to $277 million in Q2 compared to $228 million the year before. Earlier this week, Hugh Panero, who’s headed the company for a decade, said he will step down as XM’s CEO. He said in a statement that he’s confident the Sirius merger will meet the necessary standards set by the Federal Communications Commission and the Department of Justice, allowing the combination to go through by the end of this year. Other Q2 highlights from its earnings report included:

— Subscriber acquisition costs were $75, versus $67 in Q206. XM recorded gross subscriber additions of 942,000. It also posted net subscriber additions of 338,000 compared to 926,000 gross additions and 398,000 net subscriber additions in the 2006 second quarter.

— By the end of Q2, XM had $275 million in cash compared to $218 million at the end of last year. Earnings release | Webcast