Earthlink’s broadband services rose in 2006; income fell

Earthlink generated more income from broadband services than narrowband last quarter for the first time in its history but saw income fall 96 percent in 2006. The good news, and the bad news, resulted from the company’s shift in strategy to attract high-speed customers.Earthlink generated more income from broadband services than narrowband last quarter for the first time in its history. The shift was the highlight of the company’s earnings announcement yesterday.

Mike Lunsford, EarthLink interim CEO. said in a PR Newswire press release that the shift from narrowband to broadband revenues demonstrates “the success of our strategy to attract high-speed subscribers.”

According to the release, the company posted a fourth quarter net loss of $2.8 million or 20 cents per share on operating income of $9.1 million.

The Portland Business Journal reported Earthlink’s income for all of 2006 fell 96 percent “hurt mostly by the increase in operating and sales and marketing expenses to launch broadband initiatives and a loss related to its Helio joint venture.” Helio is Earthlink’s mobile phone venture with South Korea’s SK Telecom Co. Ltd.

Click here to read The Portland Business Journal’s story.

Click here for the PR Newswire’s press release on the earnings report.

link