EarthLink (Nasdaq: ELNK) reported in Q2 2013 that business services, a segment that made up 78 percent of its total revenue, dropped only 0.5 percent to $243.3 million.
A key driver in the business services segment was its retail business, one that includes MPLS, Hosted VoIP and IT Services, which reached about a $157 million annualized revenue run rate, reflecting what EarthLink said was "an accelerated 22% year-over-year growth rate."
EarthLink added that 59 percent of new bookings in Q2 consisted of EarthLink's growth products, up from 46 percent in the same period a year ago.
Serving its business customer base will be a growing fiber network and data center footprint.
As of the end of June, it completed 85 percent of its fiber network expansion and sold $1.4 million of new annualized revenue on the routes in the quarter. It also completed the rollout of five new data centers in Chicago, Dallas, Rochester, N.Y., San Jose and Miami.
The CLEC also saw that its consumer segment performed well in the quarter with broadband services making up 69 percent of its consumer access revenue. It also reduced churn rates to 2.1 percent.
Overall company revenue was $313.4 million, down sequentially from $316.8 million in Q3 2013 and $334.5 million in Q2 2012.
For the full year 2013, EarthLink has revised its revenue forecast to $1.24 to $1.25 billion and adjusted EBITDA of $214 million to $225 million. Originally, it forecast revenues of $1.24 to $1.26 billion.
Shares of EarthLink were listed at $5.82, down 4.5 cents, or 7.22 percent in Thursday morning trading on the Nasdaq stock exchange.
- see the earnings release
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