EarthLink hits profit but misses forecasts

9 Feb 2009

The US internet service provider EarthLink has swung to a profit in the fourth quarter of 2008, though its earnings missed analyst forecasts. EarthLink reported a net profit of USD27.3 million for the three months to the end of December, compared to a loss of USD9.5 million in the year-earlier period, but the announced earnings of 25 cents per share were well below Wall Street analyst predictions of around 38 cents. Turnover dropped 23% to USD216.1 million in the fourth quarter. For the full year 2008 sales fell 21% to USD955.6 million, while net profit stood at USD198.1 million, up from a USD54.8 million loss in 2007. The lower turnover figures come as a result of EarthLink’s decision to reduce customer numbers to focus on high-end users; the firm had 2.81 million dial-up and broadband subscribers at end-2008, down from 3.88 million twelve months earlier.

United States, EarthLink