Helio a Drag on EarthLink’s Quarterly Results
Tweet10/29/07 – EarthLink, the Atlanta-based Internet service provider and one of the primary investors in Westwood-based mobile virtual network operator, or MVNO, Helio, posted a third-quarter loss that was driven in large part by its investment in Helio. Quarterly reports from public companies EarthLink and Helio’s other investor SK Telecom provide a window into Helio’s financial position. EarthLink’s report revealed a $41.9 million loss from Helio, with the MVNO’s revenue at $51.7 million for the quarter with a net loss of $92.3 million.
Helio has been under enormous pressure lately to demonstrate its viability after the spectacular collapse of fellow Los Angeles-based MVNO Amp’d Mobile, the closure of MVNO Disney Mobile and Helio’s recently layoffs of about 100 employees. In addition, EarthLink recently decided to pass on further investment in Helio, while SK Telecom opted to up its stake in the company.
EarthLink said as part of its quarterly report that it would not participate in future funding rounds for Helio, but would “retain a meaningful ownership stake” in the company.
Helio has said that its customer base surpassed 130,000 during the quarter, and reiterated that it expects to have between 200,000 and 250,000 subscribers by the end of the year.
Helio – www.helio.com
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Posted by: John Cozy | November 4, 2007 06:11 AM