Internet service provider EarthLink Inc. on Friday posted its financial results for its third financial quarter, which ended on September 30, 2003. The company reported higher revenues and greater earnings, and even posted a modest net income for the quarter as well.
Revenues for the third quarter totalled US$347.4 million, a 2.0 percent increase year-over-year. EBITDA earnings totalled $45.5 million, compared to 22.4 million for the same quarter a year ago. Net income for the quarter totalled $3.5 million, or about $0.02 per share, compared to a $30.1 million loss (-$0.20 share) for the third quarter of 2002.
EarthLink President and CEO Garry Betty attributed his company’s profitability to its focus on “improving operational efficiencies.”
EarthLink added 71,000 subscribers during the third quarter, ending with about 5.0 million paying subscribers, 128,000 more than it had for the same quarter last year. The company continues to see strong growth in its broadband business, with 112,000 new broadband subscribers — 953,000 customers now access its services through high-speed Internet connections, according to the company.
Although EarthLink is continuing to see a decline in the number of narrowband subscribers, the company did see 98,000 new subscribers to its PeoplePC Online value-priced service.
EarthLink expects to see between 100,000 and 175,000 new subscribers for the fourth quarter, between its broadband and narrowband service offerings. It expects “comparable” revenues for the third quarter, with an increase in sales and marketing spending. EarthLink anticipates “to be slightly GAAP net income positive” for the quarter.