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Vonage Holdings Corporation Message Board

  • pac257 pac257 Feb 14, 2013 3:31 PM Flag

    Rio Oh-My-O Me-O

    You hate to lose Pakistan customers, but Vonage has no control over national politics in countries. If you had to choose between Brazil or Pakistan, it's a no-brainer - BRAZIL....NO CONTEST.

    The new partnership with Brazil looks very good:

    1) The populations of Pakistan and Brazil are almost the same.

    2) Average annual salaries indicate FAR MORE BUYING POWER in Brazil $29,000 than Pakistan $4650 - VERY BULLISH.

    3) Considering that Brazil is devoting $8 BILLION PER YEAR to broadband expansion and expects to have 40 million broadband subs by 2014 (up from 17 million) - That's Vonage Heaven.

    "Provider of communications services Vonage Holdings Corp (NYSE:VG) announced on Wednesday the signing of an agreement to form a joint venture (JV) with Brazilian-based Datora Telecom.

    Financial details of the agreement were not available.

    This JV will deliver communications services in Brazil.

    Reportedly, Brazil represents a substantial opportunity for Vonage and Datora, with 67 million total households, 17 million broadband households and over one million expats. Furthermore, the Brazilian government has made a commitment to invest approximately USD8.0bn per year between 2010 and 2013 to increase national broadband penetration in advance of the 2014 World Cup and 2016 Olympics2.

    As a result of this, the number of broadband households in Brazil is expected to grow to 40 million by 2014."

    Good luck to all good people.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Ever notice how whiners and especially bashers DISAPPEAR or CHANGE ALIASES when you ask them to produce FACTS to back up their BS after.... THEY ATTACK YOU?

      Thanks for the demonstration voodoo.... I mean vuuvvvu.... or whatever your alias(es) is THIS WEEK.

      Already time to change YOUR aliases AGAIN?

      Good luck to all good people.

    • You should have mentioned that Lefar said during last week's earnings call that Vonage does not expect to receive any meaningful revenue from the Brazil partnership until 2014.

      Conceptually the Brazil partnership seems good, but why get excited over something that will not bear fruit for another 4-6 quarters?

      • 2 Replies to morpheusmeyers
      • No.... that's NOT WHAT HE SAID....

        Obviously, there is no reason to delay the joint rollout of Vonage/Datora in Brazil, and Vonage is starting new advertizing 3/1/13. So the MASSIVE NEW REVENUE STREAM will begin ALMOST IMMEDIATELY and the Brazil partnership is projected to be a major part of that.


        This is actually what the man really said:

        "As stated previously, we believe that these initiatives can contribute at least a $100 million in annualized revenue by the fourth quarter of 2014. If our Brazilian partnership achieves the results we expect, it alone can meaningfully contribute to this objective."


        Good luck to all good people.

      • Morpheusmeyers is right. Relying on stretched extrapolation does not work when gross subscribers are flat or trending lower.

        You know, if three years ago Vonage were to offer international calling to Pakistan some would tell us the population of Pakistan is 176,000,000 (at that time), and that "the U.S. Census Bureau in 2010 estimated that there were 363,699 U.S. residents of Pakistani descent living in the United States". Then the pumpers would tell you that the average Pakistani family has 5 family members. This makes for approximately 70,000 US based Pakistani families. Then they will tell you Vonage will achieve 80% penetration of the US Pakistani market or 56,000 customers. Even though it was closer to just 15,000.

        They will then extrapolate that if just 1% of all Pakistanis will move to the US (after just one % of people in China eat one Big Mac per day), this 176,000 increase means another 28,000 Pakistani-American orders of Vonage for the next ten years.

    • Another backhanded endorsement of Vonage from the FOOLS at Motley - Still, it's an admission from these fools that Vonage is doing very well indeed.

      Imagine.... Actual FUNDAMENTALS from the FOOLS at Motley:

      Whoa! These 3 Stocks Are on the Ball
      February 19, 2013

      "Also apparently working out is Vonage's reintroduction of service agreements, those pernicious contracts that require you to remain with a specific carrier for a set period of time, sort of like an indentured servant who has to work off his debt. Customer churn at the VoIP specialist dropped to 2.5% from 2.7% a year ago, and though it was flat sequentially, it just might have been lower had Pakistan not raised the cost of completing an international call in the country by an unprecedented 500%. Obviously, Vonage couldn't keep the country on its unlimited access plan, and it resulted in 15,000 net line reductions in the quarter.

      The carrier implemented the service agreement plan a year ago, and though I thought it a risky option to believe that more customers didn't want to be tethered to a company for two years, Vonage seems to be making it work in its favor.

      Revenues were up 3% to $214 million, and though earnings declined slightly on a per-share basis they remained flat as it continued to buy back shares. That also informed its decision to authorize a new $100 million repurchase program as well as entering into a new credit agreement for up to $145 million.

      For what once looked like a company on the brink of disaster, Vonage appears to be clawing its way back up to respectability."

      The market always comes back to FUNDAMENTALS.

      Good luck to all good people.

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