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Web Hosting Provider EarthLink Reports Third Quarter Loss |
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October 20, 2006 – (HOSTSEARCH.COM) – Web hosting provider EarthLink, Inc has reported a loss for the third quarter ending September 30, 2006. Reasons for the loss include an investment in a wireless joint venture with South Korean company Helio and a reduction in subscribers. The loss compares with a profit of $36.4 million in the same period last year and represents a loss of 2 cents per share. Company revenue increased to $331.3 million, a 4.5 percent increase on last year, close to analyst projections of $332.9 million.
"EarthLink continues to deploy, expand and execute on its strategic initiatives to become a total communications provider," explained EarthLink President and CEO Mr. Garry Betty. "During the quarter, our core access once again funded our voice, data and wireless investments. We are also seeing a steady improvement in our non-access services as we reported our 13th consecutive quarter of record revenue from advertising and other value-added features."
According to the company, revenue increases were driven by broadband and advertising growth and growth in “other value added services revenues”. The company lost revenues from its narrowband and web hosting services. The third quarter saw EarthLink launch its DSL and Home Phone Service in eight additional markets catering to over ten million households across the USA. The company also added 47,000 net broadband customers, including 10,000 net voice subscribers. |
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