XM Canada’s parent company Canadian Satellite Radio Holdings Inc. says adjusted operating losses held steady in the second quarter as revenues grew 13.4%.
The subscription radio company, which is being merged with its rival Sirius Canada, said Tuesday that it lost $2.9 million for the three months ended Feb. 28, relatively flat with the same period a year earlier.
Revenue was $15.8 million, an increase from $13.9 million in the comparable quarter, and the 22nd consecutive quarterly period of revenue growth.
Canadian Satellite said its average monthly subscription revenue per subscriber, or ARPU, increased 30 cents to $11.44, while the number of self-paying subscribers increased by 11.1% to 402,900 from 447,600.
The earnings announcement came a day after the Canadian Radio-television and Telecommunications Commission gave its approval a deal to put XM Canada and Sirius Canada under common ownership, following a similar move in 2008 by their respective U.S. partners.
“As we move towards a merger with Sirius Canada Inc., we continue to maintain solid results and revenue growth,” XM Canada president and CEO Michael Moskowitz said Tuesday in a release.
“With the economy gaining momentum we are seeing growing interest in our high-quality programming and content.”
Once the proposed combination is completed, the two services will be owned by Canadian Satellite Radio Holdings which, in turn, will have numerous stakeholders including the federal government’s Canadian Broadcasting Corp. and Toronto businessmen John Bitove and Allan Slaight.
About 4% of the company’s shares will be traded publicly.
Canadian Satellite Radio’s shares slipped nearly 5%, or 15 cents, to $3 on the Toronto stock market.
