Update: Juno's Loss Beats Estimates
Tim Arango
08/01/00 - 04:33 PM EDT
Updated from 11:09 a.m. EDT Juno Online Services (JWEB Quote), the nation's third-largest Internet service provider, beat Wall Street estimates Tuesday when it reported quarterly results.
But that doesn't mean it made money.
Juno said it lost $1.11 per share, compared with the $1.23-per-share loss expected by financial analysts that follow the company, according to
First Call/Thomson Financial. This compares with a loss of 56 cents in the same quarter a year ago.
On the revenue side, Juno brought in $29.6 million in the quarter, a 166% increase over the $11.1 million in revenue in the year-ago quarter. Its loss rose almost as much -- 148% -- to $42.9 million vs. $17.3 million a year ago.
The company attributed the bulk of its loss on high marketing costs -- what the company termed "subscriber acquisition expenses" -- which it said it has begun reducing by suspending its use of direct mail and securing lower phone rates.
Juno's earnings report comes a day after it entered a
agreement with
Time Warner (TWX Quote) to offer Internet access over the media giant's cable network, a deal seen as significant because it could lead to further cooperation between the cable industry and ISPs and accelerate the goal of offering broad-band Internet services over cable wires.
Juno's subscriber rolls increased to 3.38 million from 3.05 million in March 2000, the end of the company's previous quarter. Based on subscribers, New York-based Juno is the U.S.' third-largest ISP, after
America Online (AOL Quote) and
Earthlink (ELNK Quote).
Juno shares closed Tuesday's trade up 3/16, or 2%, at 9 1/4, after soaring 13% Monday to close at 9 1/16.
