Vonage 3Q profit shrinks as customers pay less
HOLMDEL, N.J. (AP) — Vonage Holdings Corp. on Wednesday said that its third-quarter net income fell 18 percent compared to last year, as customers paid less for their Internet calling services.
The company earned $13.2 million, or 6 cents per share, in the July to September quarter, down from $16.0 million, or 7 cents per share, a year earlier.
Revenue slid 4 percent to $207.6 million from $216.5 million. The number of phone lines Vonage serves fell 1 percent to 2.37 million, while the average monthly revenue per line fell 2.8 percent to $29.31.
The company reported a net gain of 9,440 lines during the quarter. The number has been on a slow downward trend for the last two years.
Its shares rose 5 cents, or 2.2 percent, to $2.29 in morning trading. Its shares have traded in a 52-week range of $1.63 to $3.42.
The Holmdel, N.J., company provides phone services over the Internet for customers in the United States, Canada and the U.K.