EarthLink Cuts Losses, Beats Revenue Expectations

**Editor’s Note:

Click here

for a recap of how some of the biggest names in communications fared in Q4 2012.**

Atlanta-based EarthLink, the ISP in the midst of a transformation to an IT services provider, beat analysts’ revenue expectations in the fourth quarter.

Revenue was just shy of $332 million; Wall Street was anticipating a little more than $328 million. That was down from approximately $350 million in the year-ago quarter.

EarthLink didn’t turn a profit, but losses were small only $9,000. That was down from $4.1 million in Q4 2011.

The company is down about 115,000 dial-up Internet subscribers from a year ago, to 626,000. Its number of broadband customers also fell from 609,000 in Q4 2011 to 526,000 in Q4 2012. But that comes as little surprise as EarthLink turns its focus to IT services like the cloud and network infrastructure.

We continue to accelerate our transformation to a nationwide provider of IT services,” CEO Rolla Huff said. To capitalize on the growing demand in this rapidly emerging marketplace, we are also continuing the process of optimizing the cost structure in our traditional telecom services, while aggressively investing in our IT services, MPLS (a private IP-based networking service) and hosted voice growth businesses. EarthLinks go-to-market approach is evolving to put additional focus on larger strategic markets that align with our cloud services and network infrastructure, as well as on customers with the highest propensity to find value in our deep portfolio of IT services.”

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