EarthLink stems narrowband losses with broadband gains
Although dial-up continues bringing home most of the bacon for EarthLink Inc., broadband is beginning to pay its share of the bills, as well.
The ISP said it added a record 112,000 broadband customers in the first quarter, extending that total to 891,000, a figure that rose 67.5 percent from a year ago. That helped to offset a narrowband base that shrunk 5.1 percent to 4 million.
With broadband and narrowband subs were combined, EarthLink ended the quarter with about 5 million paying subscribers, up 2.9 percent.
On the financial front, EarthLink said revenues rose 6.1 percent to $353.7 million, and EBITDA improved to $22 million from $6.5 million in the year-ago quarter.
Narrowband revenues, thanks to a decline in subscribers, dropped 3.5 percent to $253.5 million, but broadband revenues jumped 50.8 percent to $81.4 million, representing 23 percent of EarthLink's total revenues.