Worldspace Eyes European Service Launch

[eric2314]

Worldspace Eyes European Service Launch

Worldspace, the global satellite radio player, said last week it continues to make progress towards its much-anticipated service launch in Europe next year.

During the second quarter, WorldSpace Europe, the company's majority-owned subsidiary, received approval from Germany's Federal Network Agency for the operation of a terrestrial repeater network in the country. The repeaters will work in conjunction with the Worldspace satellite network to provide German consumers with a subscription-based audio service that should debut sometime in 2009, the company said.

Worldspace's service launch in Europe will start with Italy.

"Our goals moving forward in 2008 continue to be the resolution of our financial situation and a focus on our plans to bring mobile satellite radio services to Europe," said Noah A. Samara, Worldspace chairman and CEO. "We have also drastically reigned in spending in India, pending the attainment of the license for repeaters and a local equity partner relationship there, as we continue to work very hard to solve our liquidity issues."

As for second quarter results, Worldspace reported revenues of about $3.3 million for the period, a slight increase over revenues of $3 million recorded in the first quarter.

Worldspace said it ended the quarter with 171,657 subscribers worldwide, a slight increase of 187 from the close of the prior period. The company said the small gain reflects the cessation of marketing efforts in India and other parts of the world ahead of efforts to launch services in Europe.

In India, Worldspace's biggest market, the company gained 2,283 net subscribers during the second quarter, even with substantially reduced marketing spending in the region. Worldspace ended the period with 164,309 subscribers in India, compared with 162,026 at the end of the first quarter.