Earthlink has been doing a very good job of turning things around during this past year. They started to focus on improving their business services and as a result their revenue rose 146 percent over last year. This is great news in spite of a general revenue decline of 2 percent to $357.3 million from Q2 of last year.
Earthlinks new CEO and chairman Rolla Huff has been doing a great job since his arrival. The question is can he turn the company around and will it grow once again or will he simply slow the loss?
I have been using Earthlink for probably fifteen years and have seen the ups and downs. They are definitely on one of the ups today in regards to service. I had complained about problems a year ago. Since then they have improved their service and increased capacity on email capacity for example which has vastly improved the experience for customers.
Their acquisitions of ITC^Deltacom and One Communications has given Earthlink the ability to improve their business offerings so much that is now represents 74 percent of their revenues compared to only 23 percent a year ago.
Earthlink started life as two separate companies. Services like this and AOL and others were the only way to log onto the web and check email in the early years. They were a very robust competitor back then. Since then there are a wide variety of big brand name companies like telephone and cable television that customers already do business with that have won much of this business.
Earthlink was struggling for survival a few short years ago. But Rolla Huff rolled up his sleeves and the results have been good so far.
Earthlink is an ISP. They are not a telephone company or a cable television company or a wireless company. They do business in one slice of the marketplace. That limits their growth potential. However they are a stronger company today than they were a few short years ago and that is good news.
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Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com
If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com
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Jeff KAGAN| Tech Analyst w Atlanta based jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
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Contact InformationJeff Kagan
Title: Tech Analyst ~ Telecom Industry Analyst
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