XM Satellite Radio Holdings Inc. (Nasdaq: XMSR) today announced preliminary results for the second quarter of 2008. XM added 322,000 new net subscribers in the second quarter of 2008 for a total of 9,653,000 subscribers, a 17 percent increase in subscribers since the end of the second quarter of 2007. Total gross additions for the quarter were 1,081,000, including a record 857,000 OEM gross additions, the fifth consecutive quarter of record OEM gross additions, and 224,000 retail gross additions.
Second quarter 2008 churn improved to 1.67 percent, compared to both second quarter 2007 churn of 1.84 percent and to first quarter 2008 churn of 1.77 percent. XM also announced that subscription revenue for second quarter 2008 is expected to be in the range of $283 million to $288 million and that the second quarter 2008 adjusted operating loss is expected to be in the range of $32 million to $38 million (excluding the impact of any FCC settlement). Conversion rate for promotional subscribers is expected to be in the range of 52.7 percent to 53.4 percent.
XM announced its preliminary results in connection with XM and Sirius's merger-related offering of senior notes, announced separately today. XM's independent accountants have not completed their review of the second quarter financial information and XM is still in the process of completing its normal quarter-end closing process. Accordingly, actual results may vary from the above amounts and such variance could be material. The company expects to file its 10-Q report for the second quarter 2008 in the next few days.