XM's Loss Widens Despite Subscriber Gains

XM Satellite Radio Holdings Inc., the District-based subscription-radio service, yesterday reported wider losses for the fourth quarter, even as its revenue and subscriber base grew. XM lost $188.2 million (93 cents a share), compared with a loss of $162.9 million ($1.12) for the comparable period in 2003. Revenue for the quarter rose to $83.1 million from $33.5 million.

For the full year, XM lost $642.4 million ($3.30), compared with a loss of $584.5 million ($4.83) in 2003. Revenue for the year more than doubled, however, climbing to $244.4 million from $91.8 million.

The company said the number of subscribers in 2004 grew to 3.2 million, 2 million more than XM's only direct competitor, New York-based Sirius Satellite Radio Inc.

XM said its cost to add new customers fell in 2004 to $100 per subscriber from $137, a figure that includes marketing and advertising as well as starting service. XM executives said they plan to launch the service's third satellite next week; a fourth satellite is under construction.

• Sinclair Broadcast Group Inc. reported a fourth-quarter loss that the Hunt Valley, Md., broadcaster attributed to a $44.1 million pretax write-down of goodwill. The company said it lost $2.6 million (6 cents a share), down from a profit of $18.6 million (19 cents) in the comparable quarter of 2003. Revenue rose 5 percent, to $188.1 million, from $179.2 million.

For the full year, Sinclair reported a profit of $24 million (16 cents), compared with $24.4 million (16 cents) in 2003. Revenue totaled $708.3 million, up from $688.4 million.

In a statement, Sinclair said political advertising grew to $32.1 million during 2004, up 31 percent from political ad spending in 2002, and up 43 percent from the amount booked in 2000. The company owns, programs or provides services to 62 stations in 39 markets across the United States. Sinclair said it had recently agreed to sell stations in the Kansas City and Sacramento markets.

• Collegiate Funding Services Inc., a Fredericksburg student-loan company, reported a surge in fourth-quarter profit, fueled by an expanded loan portfolio and originations of private loans. The company said it earned $17.7 million (55 cents a share), up from $1.2 million (6 cents) in the comparable quarter in 2003. Revenue rose to $66.6 million from $41 million.

Collegiate said it swung to a profit for the full year. It earned $28.6 million ($1.05), compared with a loss of $7.5 million (48 cents) in 2003. Revenue for 2004 rose 67 percent, to $198.4 million.

The company's federally guaranteed loan portfolio grew 62 percent in 2004, to $4.7 billion. Private loan originations nearly doubled for the year, to $417.1 million.

• Highland Hospitality Corp., a McLean real estate investment trust specializing in hotels, reported fourth-quarter profit of $939,000 (2 cents a share) on revenue of $53 million. Funds from operations, a measure of profitability used for REITS, were $5.6 million (14 cents). There are no prior-year results for comparison because Highland went public in December 2003.

For the year, Highland reported net income of $4.3 million (10 cents) on revenue of $133 million. Funds from operations were $15.8 million (40 cents). During 2004, the company acquired 12 hotels with a total of 3,623 rooms. With the recent closing of its $18 million purchase of the Sheraton Annapolis, Highland has 18 hotels in its portfolio.