XM Satellite Radio Holdings Inc. said Monday its first-quarter loss widened by nearly 6 percent even as revenue jumped 17 percent. XM, which is seeking regulatory approval for an acquisition by rival Sirius, said it lost $129.3 million, or 42 cents per share, compared with $122.4 million, or 40 cents per share, a year ago. XM reported $3.5 million in merger-related expenses in the quarter, compared with $9.2 million in the year-ago quarter, XM said. Analysts, who typically exclude one-time expenses such as merger costs, expected the loss to narrow to 39 cents per share, according to Thomson Financial. Washington-based XM said revenue rose 17 percent to $308 million from $264 million last year, but that fell short of the $313 million expected by Wall Street. A major factor in the company's increased expenses was the line item that includes royalties paid to artists. That increased 45 percent from a year ago, to $68.8 million, following a December decision by the federal Copyright Royalty Board to increase royalty payments required of satellite radio providers. The company finished March with 9.33 million subscribers, up from 7.9 million a year earlier. XM added a nearly identical number of subscribers _ about 1.4 million _ in the 12 months from April 2006 to March 2007. Sirius Satellite Radio Inc. most recently reported a subscriber base of 8.3 million. While smaller, it has been growing at a faster rate than XM. Sirius is expected to release updated numbers later Monday. XM shares rose 61 cents, or 5.25 percent, to $12.41 in midday trading Monday. Continued... |