XM Satellite Radio Boosts Subscriber Numbers In 2006XM Satellite Radio Boosts Subscriber Numbers In 2006

XM Satellite Radio ended 2006 with 7.6 million subscribers, adding 442,000 net customers in the fourth quarter despite softness in the retail market.

The Washington, D.C., company also said in a statement released Friday that it achieved positive cash flow from operations in the last quarter of the year, a milestone also reached in the same quarter by its rival Sirius Satellite Radio, based in New York. Both companies, however, remain unprofitable.

"XM completed another year of significant subscriber growth, despite retail softness, and did so with continued cost controls," Hugh Panero, chief executive of XM, said.

Along with the retail channel, XM and Sirius have been successful in getting many carmakers to offer their subscription services as an option in new autos.

While the companies remain fierce competitors, some analysts have said a merger is possible. However, it could be difficult to get such a deal approved by government regulators.