(Associated Press via NewsEdge) XM Satellite Radio reported a year-end subscriber tally that fell short of its earlier forecasts, which had already been lowered twice.
XM, the larger of the US' two satellite radio broadcasters, said it ended 2006 with 7.63 million subscribers.
That was up almost 1.7 million from a year ago but came short of its most recent prediction of 7.7 million to 7.9 million. A year ago, XM was forecasting 9 million subscribers at the end of 2006. It cut its forecast in May and again in July.
XM also said it turned a profit on an operating basis in the fourth quarter.
Earlier this week, rival Sirius Satellite Radio said it finished the year with more than 6 million subscribers, meeting a lowered estimate. Sirius also said it turned profitable on an operating basis.
Sirius continued to narrow the gap with its larger rival XM, adding 905,000 net subscribers in the quarter versus 442,000 net additions for XM. However analysts point out that XM, with its larger subscriber base, is more affected by having to make up for subscriber defections, or 'churn.'
© 2007 The Associated Press
© 2007 Dialog, a Thomson business. All rights reserved