XM stock soars on narrowed loss

NEW YORK (CNNMoney.com) -- XM Satellite stock jumped Monday after the No. 1 satellite radio company sharply cut its losses in the most recent quarter.

XM Satellite's (up $1.83 to $13.22, Charts) shares shot up 13 percent in morning trade.

The company, in a press release, said its third-quarter net loss was $83.8 million, or 32 cents a share. That was narrower than the $131.9 million, or 60 cents a share, lost a year earlier.

Analysts surveyed by Reuters had expected a loss of 45 cents a share.

XM Satellite ended the quarter with 7.2 million subscribers in the third quarter, up from 5 million in the same 2005 period.

The company expects to have between 7.7 million and 7.9 million at the end of the year, within the range it previously announced.

Both XM and No. 2 industry rival Sirius Satellite Radio Inc (up $0.29 to $4.05, Charts). are growing rapidly, but losing money as they beef up their technologies and enlist top-shelf entertainment, such as professional sports leagues and popular radio hosts.

The growth in the satellite radio industry has shaken up traditional radio's business. Clear Channel Communications (up $0.08 to $34.43, Charts), which owns an 8.3 percent stake in XM, has been exploring its buyout options in response to lowered ad revenue and a floundering business outlook.

Other traditional radio firms feeling the heat from satellite competition include CBS (up $0.49 to $29.00, Charts), which recently reported a decline in radio sales, as well as Citadel Broadcasting Corp. (up $0.45 to $10.38, Charts) and Cumulus Media Inc. (up $0.35 to $11.06, Charts)

----from staff and wire reports

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