EarthLink (Nasdaq: ELNK) reported that revenue in the fourth quarter of 2013 was $301.8 million, down from $329 million a year ago due to what it said was "lumpiness" from the timing of non-recurring settlements. Revenue was $1.24 billion for the full year 2013.
Business services continue to be a growing factor in EarthLink's revenue mix, comprising 78 percent of the service provider's fourth-quarter 2013 revenue.
EarthLink said that retail emerging product revenues from MPLS, hosted VoIP and cloud products grew 29 percent year-over-year to $46 million. It expects next-gen business services revenue to grow 20 percent.
The service provider also reduced customer churn to 1.6 percent, down from 2.2 percent in the third quarter of 2013.
However, overall business service revenues declined 7 percent to $236 million from $254 million in the same period a year ago. It attributes the sequential decline to seasonal factors and growth product deals and fourth-quarter closings were soft.
Wholesale revenues also declined in the quarter year-over-year to $36 million, but were flat sequentially. EarthLink said it expects wholesale revenues will decline 1 percent in 2014 due to the fiscal year impact of Sprint/Nextel disconnecting its service, but growing zero to 2 percent in the long-term. The service provider added that quarterly wholesale results will continue to be lumpy.
For the year 2014, EarthLink has forecast revenue of $1.16 billion to $1.18 billion and adjusted EBITDA of $180 million to $195 million.
Shares of EarthLink were listed at $4.29, down 26 cents or 5.71 percent, in Thursday morning trading on the Nasdaq stock exchange.
- see the earnings release
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