LOS ANGELES -- Satellite radio broadcaster XM Satellite Radio Holdings Inc. said on Monday it added 60,000 net new subscribers in the second quarter, beating its earlier forecast by 5 percent.
The company, which said in April it expected to end the second quarter with 130,000 subscribers, had a total of 136,500 subscribers as of June 30. XM also reaffirmed its forecast for 350,000 subscribers at year-end.
XM's customers have so far been signed up mostly through consumer electronic retailers including Circuit City Stores Inc. and Radio Shack.
General Motors is expected to build XM receivers into car models this summer. The company included GM sales in its full-year forecasts, and analysts have said those in-car sales are key to XM's prospects.
"It has always been our belief that the success of satellite radio lies with the (automaker) market, which means positive share performance hinges more on the (automaker) market development than better-than-expected aftermarket results, particularly since the aftermarket isn't a driver in the out years," Lehman Brothers analyst William Kidd said in a client note on Monday.
XM's only competitor, Sirius Satellite Radio Inc., launched its nationwide service on Monday.
Both services offer 100 channels of all-digital music, talk and sports programming, with some of it commercial-free. XM charges $9.99 a month for its service, while Sirius charges $12.95. Radios that add satellite programming to existing car stereos retail at $200 and higher.
XM shares were down about 2.4 percent at $7.08 in midday trade on Nasdaq after the news, while Sirius shares were up 1.6 percent at $3.83. For the year, XM shares are down about 60 percent, compared with a 68 percent decline for Sirius.