Helio has crossed the 100,000 subscriber mark, but the MVNOs growth is taking a toll on its parent company's bottom line: EarthLink posted a loss of $16.3 million in its second quarter filing, down from a profit of $16.6 million this time last year. Revenue for the quarter fell 6 percent to $312.2 million, down from $332.1 million a year ago.
"Over the past four weeks, I have had an opportunity to do initial reviews of each of our business units, as well as the Helio investment," said new CEO Rolla Huff in a press release. "These initial reviews are confirming that we have a number of opportunities...centered around implementing a more focused business strategy and sizing our cost structure to fit our current business."
Reports circulated a few weeks ago when Huff first took the helm as CEO that he might cut Helio, but EarthLink and co-owner SK Telecom are making good on their promise to each invest an additional $100 million in the MVNO. Both partners have already approved respective initial funding of $30 million.
For more on EarthLink and Helio's Q2:
- see this press release