EarthLink Q2 chills with 33K sub loss, falling revenue

Tuesday, July 27, 2010

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EarthLink did not see a lot of improvement in the second quarter, as subscriber losses once again accelerated and overall revenue fell.

After a couple of quarters of relative improvement, EarthLink once again saw its broadband customer losses widen, shedding another 33,000 subscribers during the quarter. That was up compared to the 23,000 lost in the first quarter and 11,000 lost in the second quarter 2009.

At quarter’s end, EarthLink held on to 748,000 broadband customers.

In contrast, losses among narrowband customers moderated, totaling 74,000 compared to 91,000 lost in the second quarter and 131,000 lost in the prior second quarter. That was good enough to improve consumer churn to 3% from 3.1% in the first quarter and 3.6% in the prior second quarter.

And customers were contributing more monthly revenue as well, with average revenue per user rising to $21.57 from $20.91 in the first quarter and $20.75 in the second quarter a year ago.

Despite the gains, EarthLink’s total revenue intake remained suppressed. The ISP netted $153 million, down from $157.3 million in the first quarter and $185.6 million in the second quarter 2009.

Net revenue totaled $28 million, down from $26.7 million in the first quarter and $31.5 million in the second quarter a year ago.

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