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.
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By Joseph Weisenthal