MUMBAI: Satellite radio service provider WorldSpace Inc. has reported its financial and operating results for the second quarter ended 30 June.
For the second quarter of 2005, WorldSpace reported quarterly revenues of approximately $2.3 million, representing a 21 per cent increase compared with revenues of approximately $1.9 million for the second quarter of 2004, states an official release.
Subscriber revenue increased 390 percent to approximately $0.8 million for the second quarter of 2005 compared with subscriber revenue of approximately $0.2 million for the second quarter of 2004.
During the second quarter 2005, WorldSpace continued the rollout of its service in key cities in India, including Bangalore, Chennai, and Hyderabad. As of 30 June 2005, WorldSpace had acquired 63,930 subscribers. This represented net subscriber additions of 11,427 for the quarter, an increase of 93 per cent over the 5,936 subscribers added in second quarter of 2004, the release adds.
The company recorded a net loss for the second quarter 2005 of $22.0 million or $0.95 per share compared with a net loss of $52.3 million or $9.04 per share for the second quarter of 2004. WorldSpace had an EBITDA (earnings before interest income, interest expense, income taxes, depreciation and amortization) of $12.0 million for the second quarter 2005, compared with $10.0 million for the second quarter 2004.
Said WorldSpace chairman and CEO Noah Samara, "The second quarter of 2005 was a critical time for WorldSpace as we prepared for our initial public offering, ramped up our marketing campaign in India and continued planning for the rollout of services in Western Europe and China -- markets where we enjoy a first-mover advantage. We also continued to form strategic partnerships and add new customer-driven content to our satellite radio offerings, especially in India, an under-served and highly attractive market for our products. Lastly, we continued to provide services to U.S. government agencies under existing contracts, all of which position us well for growth and expansion in the year ahead."
WorldSpace ramped up its marketing campaign in 2005 after receiving funding at the end of last year. During the second quarter of 2005, its blended Cost per Gross Addition (CPGA) was $103, compared with $107 CPGA during the second quarter of 2004. Blended CPGA includes the fully-loaded cost to acquire each new subscriber in India and in our other markets such as western Europe, Africa and the Middle East, and includes Subscriber Acquisition Cost (SAC) and other marketing expenses such as advertising and point of sale materials.
India CPGA during the three-month period ended 30 June was $175, compared with $94 for the second quarter of 2004, representing a significant ramp-up in marketing activities this year. WorldSpace's blended SAC for the second quarter of 2005 was $2.04 per subscriber, while the India SAC for the three-month period was $11.96 per subscriber.
