Earthlink, the ISP most people tend to overlook is getting a big boost from Broadband, according to Atlanta-based company’s latest earnings reports. The company now has 1.4 million broadband subscribers, and 4 million narrow band subscribers. Despite the shift, the company is slashing its full year subscriber growth from 300-to-400,000 subscribers to 231,000-to-271,000 subscribers. I assume that is because the phone companies are seriously putting a dent into its growth because of cut rate plans in places like Detroit. Things are getting rough for the company, much like the problems faced by AOL. Ironically MSN is making ton of money.
“It was a bad quarter,” said Mark May, an analyst at Kaufman Brothers, who downgraded the stock to “sell” from “hold.” “They’re having problems on the subscriber and revenue side. Those issues only got worse this quarter.”
Looking ahead, Earthlink’s Broadband subscriber growth is good news for Covad Communications, which is the wholesale DSL provider for the ISP.