From Bad to Worse for Vonage
Om Malik:
There seems to be no light at the end of the tunnel for Vonage investors.
The company reported its third quarter 2006 earnings, and things don’t look pretty. Here is a laundry list of bad news:
- Net new subscribers were 205,000, down from 256,000 in the second quarter of 2006.
- Churn is up, 2.6% versus 2.3% in the second quarter of 2006.
- Average revenue per user is down as well - by 1% to $27.40. ARPU in second quarter 2006 was $27.70.
- Subscriber acquisition costs are about $254 versus $239 in the second quarter (via UBS Research)
Looks like all that competition from cable companies, is beginning to have its impact.
Link.
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