Houston, Texas-based Internet America released its fiscal year end results today that were bolstered by the company’s transition to wireless broadband Internet services.
The company increased its wireless broadband subscriber base by 80 percent as of June 30. Internet America, which provides Internet access to both residential and business customers, currently has a total of 7,100 wireless broadband customers.
Service revenues dropped from $9.9 million in fiscal year 2006 to $7.9 million, which Internet America said was due to the decline in its dial-up subscribers. Internet America’s total subscriber base decreased by 8.6 percent to 34,200.
The company’s EBITDA earnings for the fiscal year increased by 77.3 percent to $454,000 compared to $256,000 the previous year. Internet America’s net loss was $347,000 after posting a net loss of $636,000 in 2006. The company cited cost cutting measures in staffing and telecommunications expenses as the reasons behind the reduction in its net loss, and a reduction in operating costs for the improved EBITDA.
“We are quite excited with the steps that we took during the year towards establishing a stronger platform for our broadband wireless Internet business,” said Billy Ladin, chairman and CEO of Internet America, in a statement. “We have expanded in areas of Texas providing broadband wireless Internet access services to under-served and non-served markets in suburban and rural areas and we expect to continue to grow by completing additional acquisitions and deploying new infrastructure throughout the Southwest.”