EarthLink Q3 revenue down 24% y-o-y

28 Oct 2009

Atlanta-based ISP Earthlink has reported revenues of USD174.5 million for the three months ended 30 September 2009, down 24% from USD230.8 million a year earlier. Net profit fell from USD51.89 million in the third quarter of 2008 to USD29.87 in the same period a year later. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell by USD13 million year-on-year, down to USD60.8 million in the third quarter of 2009. The company attributed the results to a declining customer base and an ongoing programme of cost-cutting measures. As a result operating expenses also fell; down to USD122.7 million in the third quarter of 2009 from USD171.4 million in 2008. The company’s total customer base fell from over three million at the end of September 2008 to 2.3 million a year later. Of these, 832,000 retail customers were contracted to broadband services at the end of Q309, down from 845,000 three months earlier. EarthLink chairman and CEO, Rolla P. Huff, said: ‘We are pleased with our third quarter operating performance, adjusted EBITDA, free cash flow and net income all came in at the high end of our estimates and as a result, we are slightly raising our full year 2009 guidance. This increased guidance includes the cost of fourth quarter productivity enhancements and the resulting cost rightsizing that continues to occur in our business. These fourth quarter initiatives are part of our ongoing and proactive efforts to reduce our cost structure.’

United States, EarthLink,

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