Vonage subscriber growth slips but net loss narrows

10 Aug 2007

Scaled back marketing has helped Vonage post a 55% reduction year-on-year in net loss for the second quarter, down from USD74.1 million to USD33.4 million. The more reserved approach however also led to lower subscriber growth, with net line additions slumping 66% to 56,691 from 165,646 in the corresponding period last year. The decline in customers means that Comcast has surpassed Vonage as the largest provider of internet-based telephony – the cableco reported three million digital phone subscribers at the end of June 2007, compared with Vonage’s 2.45 million. Nonetheless, shares in the company gained 10% on the news, with investors buoyed by the narrowing loss and also by relatively steady churn – up just 0.1 percentage point year-on-year to 2.5%.

United States