Internet Service Provider EarthLink (Nasdaq: ELNK) reported net income of $16.4 million, or 12 cents a share, on revenues of $309.7 million, on Thursday before the markets opened.

Wall Street analysts had predicted an 8 cent profit.

However, EarthLink’s earnings dropped from $33 million, or 22 cents per share, from the same quarter in 2005. Revenues were down 7.5 percent from the same quarter a year ago.

EarthLink added 85,000 broadband and voice customers as well as 125,000 PeoplePC online subscribers. However, its traditional ISP business lost 179,000 dialup, or narrowband, users.

The company reported 1.7 broadband subscribers, 2.1 million dialup users, 1.4 million PeoplePC Online customers, and 123,000 web hosting accounts.

EarthLink report: