Earnings: Earthlink Q1 Revs Fall 18.8 Percent; Income Up Strong On Cost Cuts

This story was written by Joseph Weisenthal.
Earthlink (NSDQ: ELNK) revenues fell 18.8 percent in Q1 to $263 million from $324.1 million million in the year-ago period. But the company had lower costs across the board, and was able to swing to a profit: Net income came to $57.7 million ($.53 per share), compared to a loss of $22.3 million ($.18 per share) in the year-ago period. The most striking cost reduction was in sales and marketing. The company only spent $30.9 million on this in the quarter, compared to $99.2 million in the year-ago period. Due to its ability to toe the line on costs, the company is actually raising its full-year profit guidance, as its calling for income from continuing ops of between $153 million and $163 million. Earthlink ended the quarter with 3.58 million subscribers, compared to 5.08 million at the end of Q1 last year.

Release | Webcast (8:30 AM ET)

By Joseph Weisenthal

Popular on CBS News


Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.