HostReview.com
Friday, July 21, 2006; 01:18 AM
Web hosting and Internet service provider EarthLink, Inc. yesterday posted the financial results for its second quarter ending June 30, 2006. According to the report, the company made a net income of $16.6 million, or $0.12 per share, an income of operations of $27.2 million, adjusted EBITDA (a non-GAAP measure) of $39.3 million and a free cash flow (a non-GAAP measure) of $31.5 million.
"EarthLink's core business continues to fuel our growth initiatives in voice, wireless and data services," said EarthLink president and chief executive officer Garry Betty. "Internet voice, municipal Wi-Fi and Helio mobile devices are extending our reach and giving added incentive for new and existing customers to use EarthLink as their total communications provider.
During the second quarter of 2006, EarthLink continued to grow its broadband and value dial-up services. EarthLink maintained its position as the fastest-growing value narrowband ISP by adding 48,000 net PeoplePC Online subscribers.
Broadband revenues were $144.4 million, an increase of 28.8 percent over the prior year quarter, primarily due to the addition of New Edge Networks broadband subscribers. The increase was partially offset by a decline in DSL pricing and a shift in mix to lower revenue cable and wholesale customers.
For the second quarter, advertising, other value-added services and web hosting revenues totaled $30.3 million, a 20.4 percent improvement compared to the prior year quarter, driven primarily by increases in search-related advertising revenues and ancillary services revenues, such as Internet Call Waiting and security-related services.
During the quarter, EarthLink completed its acquisition of New Edge Networks. New Edge Networks, a wholly-owned subsidiary of EarthLink, is a national provider of private Virtual Private Networks (VPNs) and secure multi- site managed data networks and dedicated Internet access for businesses and communications carriers.
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