Satellite radio company XM revealed this week that in the third quarter, its losses were up a whopping 70 percent over last year.  Analysts blame the losses on a 22 percent drop in sales at chain retail outlets like Best Buy.

On a more positive note, XM announced an increase in subscribers to their satellite radio service: 315,000 subscribers, compared with 286,000 during this same period last year.  At the end of last month, XM counted 8.5 million subscribers, up from 7.2 million last year.

XM Satellite Radio Holdings is pushing for regulatory approval to merge with its only industry competitor, the smaller Sirius Satellite Radio.

According to an article in the Washington Post, much of the increase in new subscribers comes from the customers whose automobiles come outfitted with XM radio receivers, and XM has been working actively to make deals with car manufacturers.

At the same time, however, the company is experiencing a precipitous drop in sales through retail channels, and is spending heavily to cover merger-related costs.  As yet, the company has never earned a profit.   With their quarterly report, XM reported a loss of $145.4 million, compared with a loss of $85.5 million in the third quarter the previous year. Revenue was $287.5 million, up from $240.4 million.