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EarthLink Generates Strong Second-Quarter Profit, Despite Declining Revenue

6:05 am on July 30, 2008 | Category: Business, Corporate, Internet, Telecom Services

American dialup internet provider, EarthLink, continued to suffer from declining revenue and customer base in the second quarter, but managed to generate a healthy profit.

EarthLink’s net income came in at $53.3 million for the three months ending on June 30, compared to a $16.1 million loss in the second quarter of 2007.

The company is currently attempting a shift in strategy of cutting costs by focusing on fewer, higher-value subscribers. This caused second-quarter revenue to decline sharply to $245.6 million, from $312.2 million in the same period a year earlier. Average revenue per user, however, rose to $20.64, compared to $19.98 a year ago, while subscriber churn (the number of customers quitting each quarter) dropped to 4.3%, from 4.8% in Q2/2007.

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