Broadband appeared to buoy EarthLink Inc. in the second quarter, as the
Atlanta-based Internet-service provider posted improved earnings and healthy
high-speed-data customer additions even as narrowband customers dwindled.
EarthLink's revenue totaled $335.5 million for the quarter, up 10.4 percent
compared with the second quarter of 2001.
Earnings before interest, taxes, depreciation and amortization came in at $12
million, compared with an $8.2 million loss a year ago.
Overall net losses for the ISP came in lower, totaling $40.4 million compared
with $98.7 million in losses posted in 2001.
Much of the improvement was attributed to healthy broadband-customer
additions and a price increase for narrowband customers. EarthLink added 72,000
broadband subscribers for a total of 604,000, with broadband revenue coming in
at $57.9 million, up 42.6 percent from the second quarter of 2001.
The company has now completed the rollout of service in all 39 Time Warner
Cable markets, and it recently announced that it would debut service in AT&T
Broadband's Seattle system, followed this fall by the Boston-area market.
Broadband revenue now constitutes 17.2 percent of EarthLink's revenue stream,
compared with $260.7 million for the narrowband business. While narrowband
revenue did rise 6.8 percent for the quarter, subscriber numbers fell 6.6
percent. EarthLink now claims 4.082 million narrowband customers.
For the remainder of the year, EarthLink expects to add between 250,000 and
300,000 broadband customers.