Monday, July 31, 2006

Vonage Adds 256,000 VoIP Lines in Q2

Vonage reported Q2 revenue of $143 million, up 141% from $59 million in the year-ago quarter. Net loss for the quarter was $74 million, down 14% from $85 million in the prior quarter.

Vonage added 1,005,000 net subscriber lines during the twelve months ended June 30, 2006, including approximately 256,000 during the second quarter, the second highest level of net additions in the Company's history. Vonage ended the second quarter with over 1,853,000 total subscriber lines, an increase of 16% from the prior quarter and 119% above the year-ago level.

Total marketing costs were $90 million in the second quarter 2006, 46% above the year-ago quarter amount of $62 million, and 2% above the prior quarter 2006 amount of $88 million. Marketing costs per gross subscriber line addition were $239 for the second quarter 2006. The comparable amount for the year-ago quarter was $236. Customer premise equipment ("CPE") subsidy, a measure representing the net cost of a Vonage-enabled device per gross subscriber line addition, was down $3.32 to $24.68 for the second quarter 2006 from $28.00 in the year-ago quarter.

The company hopes to end 2006 with 2.3 to 2.45 million subscriber lines.