XM Radio 2009 Annual Report Download - page 123
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Please find page 123 of the 2009 XM Radio annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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We expect SAC, as adjusted, per gross subscriber addition to decline as the costs of subsidized components of
SIRIUS and XM radios decrease in the future. Our SAC, as adjusted, per gross subscriber addition will be impacted
by our increasing mix of OEM additions and the effects of purchase price accounting adjustments.
Customer Service and Billing Expenses, As Adjusted, Per Average Subscriber. For the years ended
December 31, 2009 and 2008, customer service and billing expenses, as adjusted, per average subscriber was
$1.05 and $1.02, respectively. The increase was primarily due to the inclusion of XM, which had historically
experienced higher customer service and billing expenses.
For the years ended December 31, 2008 and 2007, Customer service and billing expenses, as adjusted, per
average subscriber was $1.02 and $1.10, respectively. The decline was primarily due to efficiencies across a larger
subscriber base.
We expect customer service and billing expenses, as adjusted, per average subscriber to decrease on an annual
basis as our subscriber base grows due to scale efficiencies in our call centers and other customer care and billing
operations.
Adjusted Income (Loss) from Operations. For the years ended December 31, 2009 and 2008, our adjusted
income (loss) from operations was $644,564 and $31,032, respectively. Adjusted income (loss) from operations was
favorably impacted by an increase of 49%, or $808,646, in revenues, partially offset by the increase of 12%, or
$195,114, in total expenses included in adjusted income (loss) from operations. The increase in revenue was due
mainly to the inclusion of XM for a full year, an increase in weighted average subscribers, increased rates on multi-
subscription packages, revenues earned on internet packages, the introduction of the U.S. Music Royalty Fee and
the sale of “Best of” programming. The increases in expenses were primarily driven by the inclusion of XM for a
full year.
For the years ended December 31, 2008 and 2007, our adjusted income (loss) from operations was $31,032 and
($327,410), respectively. Adjusted income (loss) from operations was favorably impacted by the $741,926 increase
in revenues, partially offset by the $383,484 increase in expenses included in adjusted income (loss) from
operations, both of which were favorably impacted by the inclusion of the operating results of XM in the amount
of $82,863.
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