EarthLink Reports Third Quarter 2004 Results

EarthLink, Inc. (www.earthlink.net) announced financial results for its third quarter ending September 30, 2004. 

Highlights for the quarter include: net subscriber additions of 67,000 during the third quarter and 5.4 million paying subscribers as of the end of the quarter. Revenues of $344.0 million, a 1.0 percent decrease from the third quarter of 2003. Net income of $37.6 million, or $0.24 per share, compared to $3.5 million, or $0.02 per share, from the third quarter of 2003.

"EarthLink capped the third quarter with continued improvements in net income, adjusted EBITDA and subscriber growth, which were fueled by PeoplePC Online and our high speed access services," said Garry Betty, EarthLink president and chief executive officer.

Earnings before interest income and expense, income taxes, depreciation and amortization and facility exit costs (adjusted EBITDA, a non-GAAP measure) of $55.2 million, a 21.2 percent increase from the third quarter of 2003.

"In addition to our positive financial performance, we made strong inroads in our strategy to meet the growing demand for a broader range of online communications services by launching new data and voice-based applications," added Garry.   

Additionally EarthLink added 74,000 net broadband subscribers during the quarter and ended the quarter with 1.3 million broadband customers, an increase of 34.3 percent from a year ago. 

In the third quarter, the company added 133,000 net subscribers through PeoplePC Online, EarthLink's value-priced narrowband service, while it experienced a decrease of 136,000 net subscribers in its more mature premium narrowband service. 

Net income for the quarter was $37.6 million, or $0.24 per share, a $34.1 million increase from $3.5 million, or $0.02 per share, in the prior year quarter.
Investors will have the opportunity to listen to a live Webcast of the conference call via the Internet.