EarthLink continued to see challenges in the fourth quarter of 2014, reporting that business revenues declined 4.2 percent to $225.7 million from $235.7 million.
Overall, the business segment results were a mixed bag. While Managed Network and Cloud Services rose 11 percent year-over-year to $51 million, the CLEC business declined 11 percent to $138 million and the wholesale unit remained flat at $37 million.
EarthLink said the decline in business service revenues was due to the $6.8 million of one-time favorable settlements during the third quarter of 2014.
Business churn was 1.9 percent. After seeing churn rise in the third quarter, churn stabilized and began to decrease during the fourth quarter.
There were challenges on the consumer side as well with revenue falling 11 percent to $58.8 million from $66.1 million. However, consumer customer churn fell to 1.9 percent.
Overall fourth-quarter 2014 revenues were $284.5 million, down 5.7 percent year-over-year from revenues of $301.8 million.
For the full year, total revenues reached $1.18 billion. On a slightly positive note, the service provider narrowed its losses to $72.8 million, an improvement from a net loss of $538.8 million in the same period a year ago.
Looking toward the rest of 2015, EarthLink has forecast revenues to be between $1.04 billion and $1.06 billion.
Shares of EarthLink were listed at $4.44, down 27 cents or 5.73 percent, in late Thursday morning trading on the Nasdaq stock exchange.
For more:
- see the earnings release
Special report: Wireline telecom earnings in the fourth quarter of 2014
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