Internet service provider
reported its first quarter financial results yesterday. EarthLink reported a US$18.5 million EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) loss for the quarter, which the company said was 61 percent better than they did year-over-year. Net loss totalled about $35.1 million, about 31 percent better than the same quarter last year.
EarthLink added another 102,000 subscribers for the quarter, bringing its total subscriber base to about 4.8 million paying customers. That’s about 1.3 million more than the ISP had this time last year.
EarthLink CEO Garry Betty said that his company’s first quarter results are a testament to the company’s plan to grow its subscriber base “responsibly and profitably.”
“We remain committed to making steady progress in reducing costs, controlling spending and achieving greater operating efficiencies, while we simultaneously broaden our market presence,” said Betty.
Betty said that one of EarthLink’s key responsibilities moving forward is in meeting the growing demand for high-speed access, like DSL, cable, wireless and satellite. More than 73,000 new broadband subscribers hopped on board with the company this past quarter, a more than 500 percent increase year-over-year. Broadband revenue has grown significantly in the past year — it represented 11 percent, or $32.4 million, of the company’s quarterly revenues, a 260 percent boost over last year.
Additionally, EarthLink cut its monthly subscriber churn to 3.9 percent, compared to 5.0 percent for the first quarter of last year and 4.1 percent for the previous quarter.
Despite the current economic climate, EarthLink is hoping to be reporting a profit by the end of this year. At the end of the quarter, EarthLink held $615 million in cash or equivalents, which the company says is more than enough to fund it until it’s in the black.