XM Radio 2008 Annual Report Download - page 36

(10) ARPU is derived from total earned subscriber revenue and net advertising revenue, divided by the number of
months in the period, divided by the daily weighted average number of subscribers for the period. ARPU is
calculated as follows (in thousands, except for per subscriber amounts):
2008 2007 2006
Unaudited Pro Forma
For the Three Months Ended December 31,
Subscriber revenue ........................... $ 585,534 $ 499,109 $ 392,211
Net advertising revenue ....................... 15,776 20,571 19,496
Total subscriber and net advertising revenue ........ $ 601,310 $ 519,680 $ 411,707
Daily weighted average number of subscribers ...... 18,910,689 16,629,079 12,679,925
ARPU . . .................................. $ 10.60 $ 10.42 $ 10.82
(11) SAC, as adjusted, per gross subscriber addition is derived from subscriber acquisition costs and margins from
the direct sale of radios and accessories, excluding share-based payment expense divided by the number of
gross subscriber additions for the period. SAC, as adjusted, per gross subscriber addition is calculated as
follows (in thousands, except for per subscriber amounts):
2008 2007 2006
Unaudited Pro Forma
For the Three Months Ended December 31,
Subscriber acquisition cost ........................ $ 132,731 $ 190,090 $ 191,018
Less: share-based payment expense granted to third
parties and employees ......................... — (9,323) (1,150)
Less/Add: margin from direct sales of radios and
accessories .................................. (12,628) 12,201 16,123
SAC, as adjusted ............................... $ 120,103 $ 192,968 $ 205,991
Gross subscriber additions ........................ 1,713,210 2,336,640 2,292,172
SAC, as adjusted, per gross subscriber addition ......... $ 70 $ 83 $ 90
(12) Customer service and billing expenses, as adjusted, per average subscriber is derived from total customer
service and billing expenses, excluding share-based payment expense, divided by the number of months in the
period, divided by the daily weighted average number of subscribers for the period. Customer service and
billing expenses, as adjusted, per average subscriber is calculated as follows (in thousands, except for per
subscriber amounts):
2008 2007 2006
Unaudited Pro Forma
For the Three Months Ended December 31,
Customer service and billing expenses ............ $ 67,906 $ 65,991 $ 54,762
Less: share-based payment expense ............... (870) (985) (782)
Customer service and billing expenses, as adjusted . . . $ 67,036 $ 65,006 $ 53,980
Daily weighted average number of subscribers ...... 18,910,689 16,629,079 12,679,925
Customer service and billing expenses, as adjusted,
per average subscriber....................... $ 1.18 $ 1.30 $ 1.42
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