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.