EarthLink turns a profit

30 Jul 2008

US internet service provider EarthLink has reported net profit of USD53.3 million for the second quarter, reversing a year-earlier loss of USD16.3 million. The firm says the turnaround is due to its focus on longer-term customers which cost less to support. Revenues dropped 21% to USD246 million. ‘While this focus on higher value, but fewer subscribers resulted in a decline in revenues, these tenured users also demonstrated significantly lower support cost profiles as compared to newer subscribers,’ the company said in a statement. The quarterly results included a one-off loss of USD4.4 million stemming from EarthLink’s decision to shut down its municipal Wi-Fi operations.

United States, EarthLink