Helio has 180,000 subscribers now. Here's what Alley Insider has to say about Helio numbers:
Last year, Helio booked $171M in revenue: $115M came from selling cellphone service and another $56 million from selling phones and accessories. Cost of sales: $168 million, including $71 million on wholesale airtime and $97 million on equipment. This leaves them $3 million -- a 2% margin. But then there's another $332 million (!) of operating expenses -- including $160 million spent on sales and marketing, $99 million spent on operations and member service, and $66 million spent on general and administrative costs. Net loss: $327 million.
ELN, in its SEC filing, had a couple of interesting things to say:
- EarthLink admits in the SEC filing it "may not realize the benefits we sought from our investment in the Helio joint venture."
- The filing goes on to note that ELN dumped in $210M, which it will probably not recoup;
- Helio will continue to lose money;
- "There can be no assurance that these initiatives will be commercially successful." [fierce]