TROY ? XM Satellite Radio will turn a profit next year, says the company’s chairman. Gary Parson, XM chairman, said during a visit to Detroit that the company’s start-up plan, which included provisions for heavy losses, is unfolding as planned. Thus XM is on course to turn a profit next year and sign up as many as 20 million subscribers by the end of the decade and 40 million by 2015.
XM now has more than 4 million subscribers under contract and should have 5.5 million on board by the by the end of the year, Parsons added.
“Every million subscribers adds about $100 million to our cash flow,” added Parsons after a speech to Detroit ‘s Automotive Press Association. Parsons added XM’s strong cash flow also is making it easier to cover the startup costs that are inherent in acquiring new subscribers and launching the new service.
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