Vonage, Shaken & Stirred, Again

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:

1. Net new subscribers were 205,000, down from 256,000 in the second quarter of 2006.
2. Churn is up, 2.6% versus 2.3% in the second quarter of 2006.
3. Average revenue per user is down as well – by 1% to $27.40. ARPU in second quarter 2006 was $27.70.
4. 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.

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