EarthLink tops broadband add estimates

By Susan Rush
from CED Broadband Direct, July 30, 2002

Despite fierce competition in the broadband space, EarthLink Inc. surpassed its quarterly subscriber estimates for its high-speed Internet service, adding 72,000 customers during the second quarter.

The uptick in broadband subscribers help offset a 6 percent year-over-year dip in dial-up customers. The company's second-quarter net loss shrank from $98.7 million, or 75 cents a share, in Q2 2001 to $40.4 million, or 27 cents share.

In a year-over-year comparison, revenue grew 10.4 percent to $335.5 million. Despite the increase, revenue fell short of EarthLink's prior revenue forecast of as much as $342 million. Revenue from broadband services represents 17.2 percent of EarthLink's total revenue. For the second quarter, broadband revenue totaled $57.9 million.

For full-year 2002, EarthLink expects to add between 250,000 and 300,000 broadband subscribers. The company is anticipating full-year revenue of $1.4 billion, and a per share net loss, excluding acquisition-related amortization and accretion, of between 15 cents and 22 cents.

As of 11:44 a.m. EDT, EarthLink shares were up 14 cents to $4.87. The company's shares have traded as high as $18.92 in the last 52 weeks.