Earthlink's Q2 net drops; premium dial-up still shrinking
EarthLink's second quarter net income dropped to $16.5 million, down from $43.8 million in 2Q 2005. The lower income has more to do with operational costs, although the company continues to bleed premium narrowband (dial-up) customers, with 163,000 defections in the quarter. That still leaves the company with 2 million premium subs.
EarthLink upped the number of subscribers to its cut-rate dial-up service, PeoplePC Online, by a net of 48,000, for a total of 1.4 million. It also increased its total of broadband subscribers by 116,000, in part with customers acquired through the acquisition of New Edge Networks, giving it a total of 1.8 million.
EarthLink is also compensating for the losses in its traditional dial-up market with Internet voice, municipal Wi-Fi and Helio mobile devices for VoIP.
Average monthly churn remains high, at 4.4 percent, although that's down from 4.5 percent in the second quarter of 2005 and 4.6 percent in the first quarter of 2006.