EarthLink Reports $40 Million Loss
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ATLANTA (AP) _ EarthLink Inc. lost $40 million in the second quarter as subscriber growth for high-speed Internet access was canceled out by a nearly 7 percent loss of dial-up customers.
The net loss, equal to 27 cents per share, was better than the $98.7 million, or 75 cents per share, the company lost in the same quarter last year.
Excluding amortization and depreciation costs, the company lost $10.8 million, or 7 cents a share _ 2 cents better than the forecast of analysts surveyed by Thomson First Call. That compares to an operational loss of $35.1 million, or 27 cents per share, in the same April-June quarter of 2001.
Revenue at the Atlanta-based Internet service provider rose 10 percent, to $335.5 million, from $303.7 million in the same period of 2001.
Broadband revenue increased to nearly $58 million and now represents more than 17 percent of the company’s total revenue. Dial-up revenues were up about 7 percent to $260 million.
EarthLink added 72,000 high-speed customers in the quarter, while its dial-up base shrunk to slightly more than 4 million. The company blamed last year’s $2 monthly price increase and the migration of customers to faster Internet access.
Overall, the company ended the quarter with 4.9 million subscribers.
The company also said it expects a full-year loss of 15 cents to 22 cents per share on revenue of $1.4 billion. EarthLink still plans to add 250,000 to 300,000 high-speed customers, ending 2002 with at least 5 million subscribers.
For the first half of 2002, EarthLink lost $101 million, or 68 cents a share, compared to a loss of $206.4 million, or $1.58 per share in the first six months of last year.
Six-month revenue rose to $668.8 million from $598.7 million in the first half of 2001.
EarthLink shares rose 21 cents to $4.94 in early trading Tuesday on the Nasdaq Stock Market.
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